Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Mar. 04, 2015 | Aug. 01, 2014 | |
Document and Entity Information [Text Block] [Abstract] | |||
Entity Registrant Name | Dollar Tree Inc | ||
Entity Central Index Key | 935703 | ||
Current Fiscal Year End Date | -30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $10,784,848,842 | ||
Entity Common Stock, Shares Outstanding | 205,759,864 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Jan-15 |
CONSOLIDATED_INCOME_STATEMENTS
CONSOLIDATED INCOME STATEMENTS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Statement [Abstract] | |||
Net sales | $8,602.20 | $7,840.30 | $7,394.50 |
Cost of sales | 5,568.20 | 5,050.50 | 4,741.80 |
Gross profit | 3,034 | 2,789.80 | 2,652.70 |
Selling, general and administrative | 1,993.80 | 1,819.50 | 1,732.60 |
Operating income | 1,040.20 | 970.3 | 920.1 |
Interest expense, net | 80.1 | 15.4 | 2.8 |
Other (income) expense, net | 5.9 | 0.6 | -61.6 |
Income before income taxes | 954.2 | 954.3 | 978.9 |
Provision for income taxes | 355 | 357.6 | 359.6 |
Net income | $599.20 | $596.70 | $619.30 |
Net income per share: | |||
Basic net income per share (usd per share) | $2.91 | $2.74 | $2.70 |
Diluted net income per share (usd per share) | $2.90 | $2.72 | $2.68 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Statement (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $599.20 | $596.70 | $619.30 |
Foreign currency translation adjustments | -17.2 | -15.4 | -0.9 |
Total comprehensive income | $582 | $581.30 | $618.40 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $864.10 | $267.70 |
Merchandise inventories, net | 1,035.70 | 1,035.30 |
Current deferred tax assets, net | 28.3 | 18.9 |
Prepaid expenses and other current assets | 66.5 | 56.6 |
Total current assets | 1,994.60 | 1,378.50 |
Property, plant and equipment, net | 1,210.50 | 1,094 |
Goodwill | 164.6 | 169.3 |
Deferred tax assets, net | 30.6 | 24.1 |
Other assets, net | 166.7 | 106 |
TOTAL ASSETS | 3,567 | 2,771.90 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 12.8 |
Accounts payable | 433.6 | 393.9 |
Other current liabilities | 385.3 | 232.3 |
Income taxes payable | 42.7 | 47.3 |
Total current liabilities | 861.6 | 686.3 |
Long-term debt, excluding current portion | 757 | 757 |
Income taxes payable, long-term | 6.5 | 5.5 |
Other liabilities | 156.9 | 152.4 |
Total liabilities | 1,782 | 1,601.20 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, par value $0.01; 600,000,000 shares authorized, 205,683,113 and 208,131,669 shares issued and outstanding at January 31, 2015 and February 1, 2014, respectively | 2.1 | 2.1 |
Additional paid-in capital | 43 | 10.7 |
Accumulated other comprehensive loss | -34.1 | -16.9 |
Retained earnings | 1,774 | 1,174.80 |
Total shareholders' equity | 1,785 | 1,170.70 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $3,567 | $2,771.90 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS Parenthetical (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued and outstanding (in shares) | 205,683,113 | 208,131,669 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
In Millions, except Share data, unless otherwise specified | |||||
Balance at Beginning of Year at Jan. 28, 2012 | $1,344.60 | $1.10 | $0 | ($0.60) | $1,344.10 |
Balance at Beginning of Year (in shares) at Jan. 28, 2012 | 231,200,000 | ||||
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income | 619.3 | 619.3 | |||
Total other comprehensive loss | -0.9 | -0.9 | |||
Transfer from additional paid-in capital for Common Stock dividend | 1.2 | -1.2 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | 4.8 | 4.8 | 0 | ||
Exercise of stock options, including income tax benefit (in shares) | 600,000 | ||||
Exercise of stock options, including income tax benefit | 12.8 | 12.8 | 0 | ||
Repurchase and retirement of shares (in shares) | -8,100,000 | ||||
Repurchase and retirement of shares | -340.2 | -0.1 | -43 | -297.1 | |
Stock-based compensation, net (in shares) | 800,000 | ||||
Stock-based compensation, net , including income tax benefit | 26.9 | 26.9 | 0 | ||
Balance at End of Period at Feb. 02, 2013 | 1,667.30 | 2.2 | 0.3 | -1.5 | 1,666.30 |
Balance at End of Year (in shares) at Feb. 02, 2013 | 224,600,000 | ||||
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income | 596.7 | 596.7 | |||
Total other comprehensive loss | -15.4 | -15.4 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | 4.8 | 4.8 | |||
Exercise of stock options, including income tax benefit (in shares) | 100,000 | ||||
Exercise of stock options, including income tax benefit | 3.7 | 3.7 | |||
Repurchase and retirement of shares (in shares) | -17,400,000 | ||||
Repurchase and retirement of shares | -1,112.10 | -0.1 | -23.8 | -1,088.20 | |
Stock-based compensation, net (in shares) | 700,000 | ||||
Stock-based compensation, net , including income tax benefit | 25.7 | 25.7 | |||
Balance at End of Period at Feb. 01, 2014 | 1,170.70 | 2.1 | 10.7 | -16.9 | 1,174.80 |
Balance at End of Year (in shares) at Feb. 01, 2014 | 208,100,000 | ||||
Statement of Stockholders' Equity [Roll Forward] | |||||
Net income | 599.2 | 599.2 | |||
Total other comprehensive loss | -17.2 | -17.2 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 100,000 | ||||
Issuance of stock under Employee Stock Purchase Plan | 4.7 | 4.7 | |||
Exercise of stock options, including income tax benefit (in shares) | 85,235 | 100,000 | |||
Exercise of stock options, including income tax benefit | 2.1 | 2.1 | |||
Repurchase and retirement of shares (in shares) | -3,100,000 | ||||
Repurchase and retirement of shares | 0 | 0 | 0 | 0 | |
Stock-based compensation, net (in shares) | 500,000 | ||||
Stock-based compensation, net , including income tax benefit | 25.5 | 25.5 | |||
Balance at End of Period at Jan. 31, 2015 | $1,785 | $2.10 | $43 | ($34.10) | $1,774 |
Balance at End of Year (in shares) at Jan. 31, 2015 | 205,700,000 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Statement of Stockholders' Equity [Abstract] | |||
Other comprehensive loss, income tax benefit (expense) | $0 | $0 | $0 |
Tax benefit realized from exercise of stock options | 1.4 | 1.6 | 7 |
Tax benefit from stock-based compensation expense | $3.10 | $8.20 | $14.30 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Cash flows from operating activities: | |||
Net income | $599.20 | $596.70 | $619.30 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 205.9 | 190.5 | 175.3 |
Gain on sale of Ollie's investment | 0 | 0 | -60.8 |
Provision for deferred income taxes | -18.1 | 6.7 | -7.7 |
Stock-based compensation expense | 38.3 | 37 | 35.5 |
Other non-cash adjustments to net income | 4.3 | 4.6 | 4.7 |
Changes in assets and liabilities increasing (decreasing) cash and cash equivalents: | |||
Merchandise inventories | -6 | -67.7 | -104 |
Prepaids and other current assets | -12.2 | 26.1 | -56.7 |
Accounts payable | 41.9 | 46.9 | 59.3 |
Income taxes payable | -4.6 | -32.3 | 16.3 |
Other current liabilities | 87.5 | -2.9 | 20.3 |
Other liabilities | -9.4 | -11.5 | -23.2 |
Net cash provided by operating activities | 926.8 | 794.1 | 678.3 |
Cash flows from investing activities: | |||
Capital expenditures | -325.6 | -330.1 | -312.2 |
Proceeds from sale of Ollie's investment | 0 | 0 | 62.3 |
Purchase of restricted investments | -6.8 | -8.8 | -11 |
Proceeds from sale of restricted investments | 15.8 | 15 | 0 |
Payments for (Proceeds from) fixed assets disposition | 1.6 | -0.8 | -1 |
Acquisition of favorable lease rights | 0 | -0.3 | 0 |
Net cash used in investing activities | -315 | -325 | -261.9 |
Cash flows from financing activities: | |||
Principal payments for long-term debt | -12.8 | -271.5 | -1.5 |
Proceeds from long-term debt | 0 | 770 | 7 |
Debt Issuance Cost | -11.8 | 0 | 0 |
Payments for share repurchases | 0 | -1,112.10 | -340.2 |
Proceeds from stock issued pursuant to stock-based | 5.5 | 6 | 10 |
Tax benefit of exercises/vesting of equity based compensation | 4.5 | 9.8 | 21.3 |
Net cash used in financing activities | -14.6 | -597.8 | -303.4 |
Effect of exchange rate changes on cash and cash equivalents | -0.8 | -3.5 | -1.4 |
Net increase (decrease) in cash and cash equivalents | 596.4 | -132.2 | 111.6 |
Cash and cash equivalents at beginning of year | 267.7 | 399.9 | 288.3 |
Cash and cash equivalents at end of year | 864.1 | 267.7 | 399.9 |
Cash paid for: | |||
Interest | 33.9 | 14.5 | 3.3 |
Income taxes | $372.30 | $373.20 | $333.90 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Jan. 31, 2015 | ||
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Description of Business | ||
Dollar Tree, Inc. (the Company) is the leading operator of discount variety retail stores offering merchandise at the fixed price of $1.00 or less with 5,367 discount variety retail stores in the United States and Canada at January 31, 2015. Below are those accounting policies considered by the Company to be significant. | ||
Principles of Consolidation | ||
The consolidated financial statements include the financial statements of Dollar Tree, Inc., and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Foreign Currency | ||
The functional currencies of the Company’s international subsidiaries are primarily the local currencies of the countries in which the subsidiaries are located. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a component of shareholders’ equity in accumulated other comprehensive loss. Gains and losses from foreign currency transactions, which are included in other income (expense), net have not been significant. | ||
Stock Dividend | ||
On May 29, 2012, the Company's Board of Directors approved a 2-for-1 stock split in the form of a 100% common stock dividend. New shares were distributed on June 26, 2012 to shareholders of record as of the close of business on June 12, 2012. | ||
Segment Information | ||
The Company's retail stores represent a single operating segment based on the way the Company manages its business. Operating decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company’s retail stores sell similar products and services, use similar processes to sell those products and services, and sell their products and services to similar classes of customers. The amounts of long-lived assets and net sales outside of the U.S. were not significant for any of the periods presented. | ||
Fiscal Year | ||
The Company's fiscal year ends on the Saturday closest to January 31. Any reference herein to "2014" or "Fiscal 2014," “2013” or “Fiscal 2013,” and “2012” or “Fiscal 2012,” relates to as of or for the years ended January 31, 2015, February 1, 2014, and February 2, 2013, respectively. Fiscal 2012 ended on February 2, 2013 and included 53 weeks, commensurate with the retail calendar. Fiscal 2014 and 2013 each included 52 weeks. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents at January 31, 2015 and February 1, 2014 includes $788.6 million and $172.6 million, respectively, of investments primarily in money market securities which are valued at cost, which approximates fair value. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of 3 months or less to be cash equivalents. The majority of payments due from financial institutions for the settlement of debit card and credit card transactions process within 3 business days, and therefore are classified as cash and cash equivalents. | ||
Merchandise Inventories | ||
Merchandise inventories at the Company’s distribution centers are stated at the lower of cost or market, determined on a weighted-average cost basis. Cost is assigned to store inventories using the retail inventory method on a weighted-average basis. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are computed by applying a calculated cost-to-retail ratio to the retail value of inventories. | ||
Costs directly associated with warehousing and distribution are capitalized as merchandise inventories. Total warehousing and distribution costs capitalized into inventory amounted to $44.3 million and $43.2 million at January 31, 2015 and February 1, 2014, respectively. | ||
Property, Plant and Equipment | ||
Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: | ||
Buildings | 39 to 40 years | |
Furniture, fixtures and equipment | 3 to 15 years | |
Leasehold improvements and assets held under capital leases are amortized over the estimated useful lives of the respective assets or the committed terms of the related leases, whichever is shorter. Amortization is included in "selling, general and administrative expenses" in the accompanying consolidated income statements. | ||
Costs incurred related to software developed for internal use are capitalized and amortized, generally over 3 years. | ||
Goodwill | ||
Goodwill is not amortized, but rather tested for impairment at least annually. In addition, goodwill will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The Company performed its annual impairment testing in November 2014 and determined that no impairment loss existed. | ||
Other Assets, Net | ||
Other assets, net consists primarily of deferred financing costs, restricted investments and deferred compensation plan assets. Deferred financing costs represent costs directly related to debt issuances and are amortized over the terms of the related debt. Deferred financing costs, net of amortization, were $74.3 million and $4.3 million at January 31, 2015 and February 1, 2014, respectively. Deferred financing costs of $70.2 million relate to debt to be issued in 2015 and were therefore not amortized in 2014. Included in the $70.2 million are $58.4 million of costs which have not been paid and are accrued in "Other current liabilities" on the accompanying balance sheet. Restricted investments were $78.9 million and $87.9 million at January 31, 2015 and February 1, 2014, respectively and were purchased to collateralize long-term insurance obligations. These investments are primarily in tax-exempt money market funds that invest in short-term municipal obligations. These investments are classified as available for sale and are recorded at fair value, which approximates cost. Deferred compensation plan assets were $5.5 million and $5.1 million at January 31, 2015 and February 1, 2014, respectively and are recorded at fair value. | ||
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of | ||
The Company reviews its long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets based on discounted cash flows or other readily available evidence of fair value, if any. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In fiscal 2014, 2013 and 2012, the Company recorded charges of $1.5 million, $0.5 million and $0.5 million, respectively, to write down certain assets. These charges are recorded as a component of "selling, general and administrative expenses" in the accompanying consolidated income statements. | ||
Financial Instruments | ||
The Company utilizes derivative financial instruments to reduce its exposure to market risks from changes in interest rates and diesel fuel costs. By entering into receive-variable, pay-fixed interest rate and diesel fuel swaps, the Company limits its exposure to changes in variable interest rates and diesel fuel prices. The Company is exposed to credit-related losses in the event of non-performance by the counterparty to these instruments but minimizes this risk by entering into transactions with high quality counterparties. Interest rate or diesel fuel cost differentials paid or received on the swaps are recognized as adjustments to interest and freight expense, respectively, in the period earned or incurred. The Company formally documents all hedging relationships, if applicable, and assesses hedge effectiveness both at inception and on an ongoing basis. | ||
Fair Value Measurements | ||
Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: | ||
Level 1 - Quoted prices in active markets for identical assets or liabilities; | ||
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and | ||
Level 3 - Unobservable inputs in which there is little or no market data which require the reporting entity to develop its own assumptions. | ||
The Company’s cash and cash equivalents, restricted investments and diesel fuel swaps represent the financial assets and liabilities that were accounted for at fair value as of January 31, 2015 and February 1, 2014. As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The fair value of the Company’s cash and cash equivalents was $864.1 million and $267.7 million as of January 31, 2015 and February 1, 2014, respectively. The fair value of the Company's restricted investments was $78.9 million and $87.9 million as of January 31, 2015 and February 1, 2014, respectively. These fair values were determined using Level 1 measurements in the fair value hierarchy. The fair value of the diesel fuel swaps was a liability of $5.7 million as of January 31, 2015. The Company did not have any active fuel derivative contracts as of February 1, 2014. The fair values of the swaps were estimated using Level 2 measurements in the fair value hierarchy. These estimates used discounted cash flow calculations based upon forward interest-rate yield and diesel cost curves. The curves were obtained from independent pricing services reflecting broker market quotes. | ||
The estimated fair value of the Company’s long-term debt was $700.9 million as of January 31, 2015 and $769.8 million as of February 1, 2014 . The fair value of the Senior Notes is determined through the use of a discounted cash flow analysis using Level 3 inputs as there are no quoted prices in active markets for these notes. The discount rate used in the analysis was based on borrowing rates available to the Company for debt of the same remaining maturities, issued in the same private placement debt market. The carrying value of the Company's Demand Revenue Bonds at February 1, 2014 approximates its fair value because the debt's interest rate varies with market interest rates. | ||
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). The Company recorded impairment charges of $1.5 million, $0.5 million, and $0.5 million in fiscal 2014, 2013 and 2012, respectively, to reduce certain store assets to their estimated fair values. The fair values were determined based on the income approach, in which the Company utilized internal cash flow projections over the life of the underlying lease agreements discounted based on a risk-free rate of return. These measures of fair value, and related inputs, are considered a level 3 approach under the fair value hierarchy. There were no other changes related to level 3 assets. | ||
Lease Accounting | ||
The Company leases almost all of its retail locations under operating leases. The Company recognizes minimum rent expense beginning when possession of the property is taken from the landlord, which normally includes a construction period prior to store opening. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related rent expense on a straight-line basis and records the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. The Company also receives tenant allowances, which are recorded in deferred rent and are amortized as reductions of rent expense over the terms of the leases. | ||
Revenue Recognition | ||
The Company recognizes sales revenue at the time a sale is made to its customer. | ||
Taxes Collected | ||
The Company reports taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions (i.e., sales tax) on a net (excluded from revenue) basis. | ||
Cost of Sales | ||
The Company includes the cost of merchandise, warehousing and distribution costs, and certain occupancy costs in cost of sales. | ||
Pre-Opening Costs | ||
The Company expenses pre-opening costs for new, expanded and relocated stores, as incurred. | ||
Advertising Costs | ||
The Company expenses advertising costs as they are incurred and they are included in "selling, general and administrative expenses" on the accompanying consolidated income statements. Advertising costs approximated $18.1 million, $14.9 million and $13.5 million for the years ended January 31, 2015, February 1, 2014, and February 2, 2013, respectively. | ||
Income Taxes | ||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. | ||
The Company recognizes a financial statement benefit for a tax position if it determines that it is more likely than not that the position will be sustained upon examination. | ||
The Company includes interest and penalties in the provision for income tax expense and income taxes payable. The Company does not provide for any penalties associated with tax contingencies unless they are considered probable of assessment. | ||
Stock-Based Compensation | ||
The Company recognizes expense for all share-based payments to employees based on their fair values. Total stock-based compensation expense for 2014, 2013 and 2012 was $37.4 million, $36.2 million and $34.9 million, respectively. | ||
The Company recognizes expense related to the fair value of restricted stock units (RSUs) over the requisite service period on a straight-line basis or a shorter period based on the retirement eligibility of the grantee. The fair value is determined using the closing price of the Company’s common stock on the date of grant. | ||
Net Income Per Share | ||
Basic net income per share has been computed by dividing net income by the weighted average number of shares outstanding. Diluted net income per share reflects the potential dilution that could occur assuming the inclusion of dilutive potential shares and has been computed by dividing net income by the weighted average number of shares and dilutive potential shares outstanding. Dilutive potential shares include all outstanding stock options and unvested RSUs after applying the treasury stock method. |
BALANCE_SHEET_COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS | |||||||
Property, Plant and Equipment, Net | ||||||||
Property, plant and equipment, net, as of January 31, 2015 and February 1, 2014 consists of the following: | ||||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Land | $ | 79 | $ | 65.2 | ||||
Buildings | 336.9 | 319.8 | ||||||
Leasehold improvements | 1,068.20 | 960.7 | ||||||
Furniture, fixtures and equipment | 1,385.20 | 1,307.00 | ||||||
Construction in progress | 100.9 | 57.4 | ||||||
Total property, plant and equipment | 2,970.20 | 2,710.10 | ||||||
Less: accumulated depreciation | 1,759.70 | 1,616.10 | ||||||
Total property, plant and equipment, net | $ | 1,210.50 | $ | 1,094.00 | ||||
Depreciation expense was $206.0 million, $190.7 million and $175.4 million for the years ended January 31, 2015, February 1, 2014, and February 2, 2013, respectively. | ||||||||
Other Assets | ||||||||
Other assets as of January 31, 2015 and February 1, 2014 consist of the following: | ||||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Deferred financing costs, net | $ | 74.3 | $ | 4.3 | ||||
Other intangible assets, net | 1.5 | 2.5 | ||||||
Long-term federal income tax benefit | 2.2 | 1.9 | ||||||
Restricted investments | 78.9 | 87.9 | ||||||
Other long-term assets | 9.8 | 9.4 | ||||||
Total other assets | $ | 166.7 | $ | 106 | ||||
Other Current Liabilities | ||||||||
Other current liabilities as of January 31, 2015 and February 1, 2014 consist of accrued expenses for the following: | ||||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Compensation and benefits | $ | 108.6 | $ | 95.3 | ||||
Taxes (other than income taxes) | 30.6 | 26.4 | ||||||
Insurance | 42.7 | 34.1 | ||||||
Accrued deferred financing costs | 58.4 | — | ||||||
Accrued interest | 48.3 | 2 | ||||||
Other | 96.7 | 74.5 | ||||||
Total other current liabilities | $ | 385.3 | $ | 232.3 | ||||
Other Long-Term Liabilities | ||||||||
Other long-term liabilities as of January 31, 2015 and February 1, 2014 consist of the following: | ||||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Deferred rent | $ | 91.9 | $ | 86.3 | ||||
Insurance | 51.8 | 54.7 | ||||||
Other | 13.2 | 11.4 | ||||||
Total other long-term liabilities | $ | 156.9 | $ | 152.4 | ||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
Total income taxes were allocated as follows: | ||||||||||||
Year Ended | ||||||||||||
(in millions) | 31-Jan-15 | 1-Feb-14 | 2-Feb-13 | |||||||||
Income from continuing operations | $ | 355 | $ | 357.6 | $ | 359.6 | ||||||
Shareholders' equity, tax benefit on | ||||||||||||
exercises/vesting of equity-based | ||||||||||||
compensation | (4.5 | ) | (9.8 | ) | (21.3 | ) | ||||||
$ | 350.5 | $ | 347.8 | $ | 338.3 | |||||||
The provision for income taxes consists of the following: | ||||||||||||
Year Ended | ||||||||||||
January 31, | February 1, | February 2, | ||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Federal - current | $ | 325.1 | $ | 304.6 | $ | 324.5 | ||||||
State - current | 47.6 | 45.9 | 42.4 | |||||||||
Foreign - current | 0.4 | 0.4 | 0.5 | |||||||||
Total current | 373.1 | 350.9 | 367.4 | |||||||||
Federal - deferred | (9.7 | ) | 10.5 | 0.3 | ||||||||
State - deferred | (3.2 | ) | 0.9 | (3.5 | ) | |||||||
Foreign - deferred | (5.2 | ) | (4.7 | ) | (4.6 | ) | ||||||
Total deferred | $ | (18.1 | ) | $ | 6.7 | $ | (7.8 | ) | ||||
Included in current tax expense for the years ended January 31, 2015, February 1, 2014 and February 2, 2013, are amounts related to uncertain tax positions associated with temporary differences, in accordance with ASC 740. | ||||||||||||
A reconciliation of the statutory federal income tax rate and the effective rate follows: | ||||||||||||
Year Ended | ||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||
Statutory tax rate | 35 | % | 35 | % | 35 | % | ||||||
Effect of: | ||||||||||||
State and local income taxes, | ||||||||||||
net of federal income tax benefit | 3.3 | 3.3 | 3 | |||||||||
Other, net | (1.1 | ) | (0.8 | ) | (1.3 | ) | ||||||
Effective tax rate | 37.2 | % | 37.5 | % | 36.7 | % | ||||||
The rate reduction in “other, net” consists primarily of benefits from federal job credits and foreign taxes offset by certain nondeductible expenses. | ||||||||||||
United States income taxes have not been provided on accumulated but undistributed earnings of the Company's foreign subsidiaries as the Company intends to permanently reinvest earnings. | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are classified on the accompanying consolidated balance sheets based on the classification of the underlying asset or liability. Significant components of the Company's net deferred tax assets (liabilities) follow: | ||||||||||||
(in millions) | January 31, | February 1, | ||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Deferred rent | $ | 41 | $ | 38.2 | ||||||||
Accrued expenses | 37.6 | 34.2 | ||||||||||
Net operating losses and credit carryforwards | 31 | 19.3 | ||||||||||
Accrued compensation expense | 33.8 | 29.5 | ||||||||||
Other | 5.1 | 0.6 | ||||||||||
Total deferred tax assets | 148.5 | 121.8 | ||||||||||
Valuation allowance | (13.8 | ) | (6.0 | ) | ||||||||
Deferred tax assets, net | 134.7 | 115.8 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (48.7 | ) | (46.6 | ) | ||||||||
Goodwill | (18.7 | ) | (16.9 | ) | ||||||||
Prepaid expenses | (3.0 | ) | (3.7 | ) | ||||||||
Inventory | (5.4 | ) | (5.6 | ) | ||||||||
Total deferred tax liabilities | (75.8 | ) | (72.8 | ) | ||||||||
Net deferred tax asset | $ | 58.9 | $ | 43 | ||||||||
A valuation allowance of $13.8 million, net of federal tax benefits, has been provided principally for certain state credit carryforwards and net operating loss carryforwards. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred taxes will not be realized. Based upon the availability of carrybacks of future deductible amounts to the past two years’ taxable income and the Company's projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes it is more likely than not the remaining existing deductible temporary differences will reverse during periods in which carrybacks are available or in which the Company generates net taxable income. Of the net operating losses and credit carryforwards, $10.1 million is included in the valuation allowance and the remaining amounts expire between 2020 and 2035. | ||||||||||||
The company is participating in the Internal Revenue Service (“IRS”) Compliance Assurance Program (“CAP”) for the 2014 fiscal year and will participate in the program for fiscal year 2015. This program accelerates the examination of key transactions with the goal of resolving any issues before the tax return is filed. Our federal tax returns have been examined and all issues have been settled through our fiscal 2013 tax year. In addition, several states completed their examination during fiscal 2014. In general, fiscal years 2011 and forward are within the statute of limitations for state tax purposes. The statute of limitations is still open prior to 2011 for some states. | ||||||||||||
The balance for unrecognized tax benefits at January 31, 2015, was $6.5 million. The total amount of unrecognized tax benefits at January 31, 2015, that, if recognized, would affect the effective tax rate was $4.3 million (net of the federal tax benefit). The following is a reconciliation of the Company’s total gross unrecognized tax benefits: | ||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Beginning Balance | $ | 5.5 | $ | 5.6 | ||||||||
Additions, based on tax positions related to current year | 0.6 | 0.2 | ||||||||||
Additions for tax positions of prior years | 0.9 | 0.8 | ||||||||||
Reductions for tax positions of prior years | — | (0.2 | ) | |||||||||
Settlements | — | (0.3 | ) | |||||||||
Lapses in statutes of limitation | (0.5 | ) | (0.6 | ) | ||||||||
Ending balance | $ | 6.5 | $ | 5.5 | ||||||||
During fiscal 2014, the Company accrued potential interest of $0.2 million, related to these unrecognized tax benefits. As of January 31, 2015, the Company has recorded a liability for potential interest of $0.7 million. | ||||||||||||
It is possible that state tax reserves will be reduced for audit settlements and statute expirations within the next 12 months. At this point it is not possible to estimate a range associated with the resolution of these audits. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||||||||||
Operating Lease Commitments | ||||||||||||
Future minimum lease payments under noncancelable store and distribution center operating leases are as follows: | ||||||||||||
(in millions) | ||||||||||||
2015 | $ | 558.6 | ||||||||||
2016 | 521.8 | |||||||||||
2017 | 469.8 | |||||||||||
2018 | 335.7 | |||||||||||
2019 | 244.1 | |||||||||||
Thereafter | 492.5 | |||||||||||
Total minimum lease payments | $ | 2,622.50 | ||||||||||
The above future minimum lease payments include amounts for leases that were signed prior to January 31, 2015 for stores that were not open as of January 31, 2015. | ||||||||||||
Minimum rental payments for operating leases do not include contingent rentals that may be paid under certain store leases based on a percentage of sales in excess of stipulated amounts. Future minimum lease payments have not been reduced by expected future minimum sublease rentals of $0.3 million under operating leases. | ||||||||||||
Minimum and Contingent Rentals | ||||||||||||
Rental expense for store and distribution center operating leases (including payments to related parties) included in the accompanying consolidated income statements are as follows: | ||||||||||||
Year Ended | ||||||||||||
January 31, | February 1, | February 2, | ||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Minimum rentals | $ | 536.5 | $ | 496.4 | $ | 455.5 | ||||||
Contingent rentals | 1.8 | 1.8 | 2 | |||||||||
Technology Assets | ||||||||||||
The Company has commitments totaling approximately $13.5 million to purchase primarily store technology assets and maintenance for its stores during 2015. | ||||||||||||
Telecommunication Contracts | ||||||||||||
The Company has contracted for telecommunication services with agreements expiring in 2017. The total amount of these commitments is approximately $16.8 million. | ||||||||||||
Letters of Credit | ||||||||||||
The Company is a party to three Letter of Credit Reimbursement and Security Agreements providing $110.0 million, $100.0 million, and $20.0 million, respectively for letters of credit. Letters of credit under these agreements are generally issued for the routine purchase of imported merchandise and approximately $162.9 million was committed to these letters of credit at January 31, 2015. As discussed in Note 5, the Company also has $150.0 million of available letters of credit included in the $750.0 million Unsecured Credit Agreement; however, as of January 31, 2015, there were no letters of credit committed under this agreement. | ||||||||||||
The Company also has approximately $11.9 million in stand-by letters of credit that serve as collateral for its large-deductible insurance programs and expire in fiscal 2015. | ||||||||||||
Surety Bonds | ||||||||||||
The Company has issued various surety bonds that primarily serve as collateral for utility payments at the Company’s stores. These bonds total approximately $4.2 million and are committed through various dates through fiscal 2016. | ||||||||||||
Contingencies | ||||||||||||
Active | ||||||||||||
Winn-Dixie Stores instituted suit in federal court in Florida alleging that the Company sold products in 48 stores in violation of a lease exclusive. In August 2012, the Court denied Winn-Dixie's claim for damages and granted Winn-Dixie’s request for injunctive relief with respect to just one store. Winn-Dixie appealed to the U.S. Court of Appeals for the 11th Circuit, which affirmed that Winn-Dixie is not entitled to damages. However, it also held that Winn-Dixie's restriction for 21 of the Company's Florida stores required the Company to restrict its sales of food and "many household supplies" such as "soap, matches and paper napkins" to 500 square feet of floor space for fixtures containing food and many household supplies plus a portion of the surrounding aisle. The 11th Circuit remanded the case to the lower court for a new trial to determine the definition of "many household supplies" and how much aisle space should be included. Additional Florida leases may be impacted. The Company has previously restricted these 21 stores to 500 square feet of floor space for food, not including the aisle and not including many household supplies. These stores must now restrict their sales of certain household supplies further, but it is unclear how certain household products will be specifically defined and how much aisle space must be included. These issues may be decided by the trial court in the near future. | ||||||||||||
In 2011, an assistant store manager and an hourly associate filed a collective action against the Company alleging they were forced to work off the clock in violation of the Fair Labor Standards Act (FLSA) and state law. A federal judge in Virginia ruled that all claims made on behalf of assistant store managers under both the FLSA and state law should be dismissed. The court, however, certified an opt-in collective action under the FLSA on behalf of hourly sales associates. Approximately 4,300 plaintiffs remain in the case. In March 2014, the court denied the Company's motion to decertify the collective action and the case is now continuing. | ||||||||||||
In 2012, a former assistant store manager, on behalf of himself and those alleged to be similarly situated, filed a putative class action in a California state court, alleging the Company failed to provide rest breaks to assistant store managers. The alleged time period is July 13, 2008 to the present. Discovery is ongoing. The class has been certified and the case is proceeding to the liability phase. | ||||||||||||
In 2013, a former assistant store manager on behalf of himself and others alleged to be similarly aggrieved filed a representative Private Attorney General Act ("PAGA") claim under California law currently pending in federal court in California. The suit alleges that the Company failed to provide uninterrupted meal periods and rest breaks; failed to pay minimum, regular and overtime wages; failed to maintain accurate time records and wage statements; and failed to pay wages due upon termination of employment. Discovery has not commenced. A trial date has been set for October 26, 2015. | ||||||||||||
In May 2014, a former assistant store manager filed a putative class action in a California state court for alleged failure to provide meal periods, overtime, timely payment of wages during employment and upon termination, failure to provide accurate wage statements, as well as for alleged failure to indemnify employees for business expenses in violation of California labor laws. This matter is in early stages of litigation. Discovery has not commenced and no trial date has been set. | ||||||||||||
In September 2013, district attorneys in California initiated an investigation of whether the Company properly disposed of certain damaged retail products under Federal and California state environmental law, primarily the Resource Conservation and Recovery Act. The Company is in the process of settling this matter and has fully accrued its estimated loss which is immaterial. | ||||||||||||
In May 2014, the US Consumer Product Safety Commission ("CPSC") began a staff investigation of circumstances related to Letters of Advice that the Company received from the CPSC from 2009 to 2013. The CPSC is now investigating Letters of Advice the Company received in 2014 and 2015. The outcome of this matter cannot be determined at this time. | ||||||||||||
In July and August 2014, several shareholders of Family Dollar Stores, Inc. (“Family Dollar”) filed class actions, now consolidated into one class action, in Delaware chancery court against Family Dollar’s CEO and board members alleging breach of fiduciary duty. Dollar Tree and Family Dollar were also named as defendants for allegedly aiding and abetting the other defendants. The claimed breach derives from the execution of the merger agreement dated July 27, 2014, between Dollar Tree and Family Dollar, which is alleged to offer unfair and inadequate consideration for Family Dollar stock. The class action, among other things, seek to prevent the merger, obtain higher merger consideration or seek monetary damages. The Delaware Chancery Court and appellate court refused to issue an injunction against the Family Dollar shareholder vote in favor of the merger. | ||||||||||||
The Company will vigorously defend itself in these matters. The Company does not believe that any of these matters will, individually or in the aggregate, have a material effect on its business or financial condition. The Company cannot give assurance, however, that one or more of these lawsuits will not have a material effect on its results of operations for the period in which they are resolved. Based on the information available to the Company, including the amount of time remaining before trial, the results of discovery and the judgment of internal and external counsel, the Company is unable to express an opinion as to the outcome of these matters and cannot estimate a potential range of loss except as specified above. | ||||||||||||
Resolved | ||||||||||||
A supermarket filed a lease exclusive case and a second companion unfair competition case against the Company in a Pennsylvania state court. These two cases were settled in fiscal 2014 for immaterial amounts. | ||||||||||||
A supermarket filed a lease exclusive case against the Company in Pennsylvania state court. This case was settled for an immaterial amount in fiscal 2014. | ||||||||||||
In 2012, two former store managers, under California's Labor Code and PAGA, instituted suit in the federal court in California on behalf of themselves and others alleged to be similarly aggrieved in the state of California, alleging they were misclassified by the Company as exempt employees. The Company settled with one plaintiff for an immaterial amount. The Company prevailed at trial in November 2013 with the other plaintiff. A final Order has been entered in favor of the Company and the Plaintiff waived his right to appeal. |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
LONG-TERM DEBT | NOTE 5 - LONG-TERM DEBT | |||||||
Long-term debt at January 31, 2015 and February 1, 2014 consists of the following: | ||||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
$750.0 million Senior Notes, | $ | 750 | $ | 750 | ||||
fixed interest rates payable semi-annually, January 15 and July 15 | ||||||||
$750.0 million Unsecured Credit Agreement, | ||||||||
interest payable monthly at LIBOR, | ||||||||
plus 0.90%, which was 1.07% at | ||||||||
31-Jan-15 | — | — | ||||||
Demand Revenue Bonds, repaid March 2014 | — | 12.8 | ||||||
$7.0 million Forgivable Promissory Note, interest payable | ||||||||
beginning in November 2017 at a rate of 1%, | ||||||||
principal payable beginning November 2017 | 7 | 7 | ||||||
Total long-term debt | $ | 757 | $ | 769.8 | ||||
Less current portion | — | 12.8 | ||||||
Long-term debt, excluding current portion | $ | 757 | $ | 757 | ||||
Maturities of long-term debt are as follows: 2017 - $0.2 million, 2018 - $1.4 million, 2019 - $1.4 million and after 2019 - $754.0 million | ||||||||
Senior Notes | ||||||||
The Company entered into a Note Purchase Agreement on September 16, 2013 with institutional accredited investors in which the Company issued and sold $750.0 million of Senior Notes (the "Notes") in an offering exempt from the registration requirements of the Securities Act of 1933. The Notes consist of three tranches: $300.0 million of 4.03% Senior Notes due September 16, 2020; $350.0 million of 4.63% Senior Notes due September 16, 2023; and $100.0 million of 4.78% Senior Notes due September 16, 2025. Interest on the Notes is payable semi-annually on January 15 and July 15 of each year, beginning January 15, 2014. The Notes are unsecured and rank pari passu in right of repayment with the Company's other senior unsecured indebtedness. The Company may prepay some or all of the Notes at any time in an amount not less than 5% of the original aggregate principal amount of the Notes to be prepaid, at a price equal to the sum of (a) 100% of the principal amount thereof, plus accrued and unpaid interest, and (b) the applicable make-whole amount. In the event of a change in control (as defined in the Note Purchase Agreement), the Company may be required to prepay the Notes. The Note Purchase Agreement contains customary affirmative and restrictive covenants. The Company used the net proceeds of the Notes to finance share repurchases. | ||||||||
On January 20, 2015, the Company entered into the First Amendment (the “ Notes Amendment”) to the Note Purchase Agreement, with a majority of the noteholders party thereto. The Notes Amendment was entered into in connection with the Company’s pending acquisition (the “Acquisition”) of Family Dollar Stores, Inc. (“Family Dollar”). The Notes Amendment will, among other things, allow a newly-formed subsidiary of the Company to issue debt and hold the proceeds in escrow pending consummation of the Acquisition (such debt, the “Escrow Debt”). Pursuant to the terms of the Notes Amendment, in certain circumstances the amount of interest due on the Notes may increase by 1.0% per annum. The Notes Amendment also contains certain negative covenants and other restrictions applicable during the period in which any Escrow Debt is outstanding. | ||||||||
Unsecured Credit Agreement | ||||||||
In 2012, the Company entered into a five-year Unsecured Credit Agreement (the "Agreement") which provides for a $750.0 million revolving line of credit, including up to $150.0 million in available letters of credit. The interest rate on the facility is based, at the Company’s option, on a LIBOR rate, plus a margin, or an alternate base rate, plus a margin. The revolving line of credit also bears a facilities fee, calculated as a percentage, as defined, of the amount available under the line of credit, payable quarterly. The Agreement, among other things, requires the maintenance of certain specified financial ratios, restricts the payment of certain distributions and prohibits the incurrence of certain new indebtedness. | ||||||||
On September 16, 2013, the Company amended the Agreement to enable the issuance of the Notes. | ||||||||
On August 15, 2014, the Company entered into an amendment (the "Credit Amendment") to the Agreement. The Credit Amendment further amends the Agreement to facilitate the issuance and/or borrowings of certain third-party debt financing that may be used by the Company to finance the Acquisition. The Credit Amendment also facilitates escrow arrangements related to the Acquisition. | ||||||||
Demand Revenue Bonds | ||||||||
In 1998, the Company entered into an unsecured Loan Agreement with the Mississippi Business Finance Corporation (MBFC) under which the MBFC issued Taxable Variable Rate Demand Revenue Bonds (the Bonds) in an aggregate principal amount of $19.0 million to finance the acquisition, construction, and installation of land, buildings, machinery and equipment for the Company's distribution facility in Olive Branch, Mississippi. The Bonds did not contain a prepayment penalty as long as the interest rate remained variable. The Bonds contained a demand provision and, therefore, were classified as current liabilities. On March 3, 2014, the Company repaid the $12.8 million outstanding under the Demand Revenue Bonds and the debt was retired. | ||||||||
Forgivable Promissory Note | ||||||||
In 2012, the Company entered into a promissory note with the state of Connecticut under which the state loaned the Company $7.0 million in connection with the Company's acquisition, construction and installation of land, building, machinery and equipment for the Company's distribution facility in Windsor, Connecticut. If certain performance targets are met, the loan and any accrued interest will be forgiven in fiscal 2017. If the performance targets are not met, the loan and accrued interest must be repaid over a five-year period beginning in fiscal 2017. |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Jan. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS |
Hedging Derivatives | |
In order to manage fluctuations in cash flows resulting from changes in diesel fuel costs, the Company entered into fuel derivative contracts with third parties. The Company hedged 1.6 million, 2.8 million and 4.8 million gallons of diesel fuel in 2014, 2013 and 2012, respectively. These hedges represented approximately 10%, 20% and 35% of the total domestic truckload fuel needs in 2014, 2013 and 2012, respectively. The Company currently has fuel derivative contracts to hedge 6.6 million gallons of diesel fuel, or approximately 40% of the Company's domestic truckload fuel needs from February 2015 through January 2016. Under these contracts, the Company pays the third party a fixed price for diesel fuel and receives variable diesel fuel prices at amounts approximating current diesel fuel costs, thereby creating the economic equivalent of a fixed-rate obligation. These derivative contracts do not qualify for hedge accounting and therefore all changes in fair value for these derivatives are included under "Other (income) expense, net" on the accompanying consolidated income statements. The fair value of these contracts at January 31, 2015 was a liability of $5.7 million. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY | ||||||||||||
Preferred Stock | |||||||||||||
The Company is authorized to issue 10,000,000 shares of Preferred Stock, $0.01 par value per share. No preferred shares are issued and outstanding at January 31, 2015 and February 1, 2014. | |||||||||||||
Net Income Per Share | |||||||||||||
The following table sets forth the calculation of basic and diluted net income per share: | |||||||||||||
Year Ended | |||||||||||||
January 31, | February 1, | February 2, | |||||||||||
(in millions, except per share data) | 2015 | 2014 | 2013 | ||||||||||
Basic net income per share: | |||||||||||||
Net income | $ | 599.2 | $ | 596.7 | $ | 619.3 | |||||||
Weighted average number of shares | |||||||||||||
outstanding | 206 | 218.1 | 229.3 | ||||||||||
Basic net income per share | $ | 2.91 | $ | 2.74 | $ | 2.7 | |||||||
Diluted net income per share: | |||||||||||||
Net income | $ | 599.2 | $ | 596.7 | $ | 619.3 | |||||||
Weighted average number of shares | |||||||||||||
outstanding | 206 | 218.1 | 229.3 | ||||||||||
Dilutive effect of stock options and | |||||||||||||
restricted stock (as determined by | |||||||||||||
applying the treasury stock method) | 1 | 1 | 1.4 | ||||||||||
Weighted average number of shares and | |||||||||||||
dilutive potential shares outstanding | 207 | 219.1 | 230.7 | ||||||||||
Diluted net income per share | $ | 2.9 | $ | 2.72 | $ | 2.68 | |||||||
At January 31, 2015, February 1, 2014 and February 2, 2013, substantially all of the stock options outstanding were included in the calculation of the weighted average number of shares and dilutive potential shares outstanding. | |||||||||||||
Share Repurchase Programs | |||||||||||||
The Company repurchases shares on the open market and under Accelerated Share Repurchase agreements. | |||||||||||||
On September 17, 2013, the Company entered into two $500.0 million variable maturity accelerated share repurchase agreements to repurchase $1.0 billion of the Company’s common shares in the aggregate. One agreement was collared and the other was uncollared. | |||||||||||||
The number of shares to be received by the Company under the collared agreement was determined based on the weighted average market price of the Company’s common stock, less a discount, during a calculation period ending on or before June 2014, subject to a minimum and maximum number of shares. Under this agreement, the Company received 7.8 million shares during the year ended February 1, 2014. This represents the minimum number of shares to be received based on a calculation using the "cap" or high-end of the price range of the "collar". On May 15, 2014 the collared agreement concluded and the Company received an additional 1.2 million shares resulting in a total of 9.0 million shares repurchased under this agreement. | |||||||||||||
The number of shares to be received by the Company under the uncollared agreement was determined based on the weighted average market price of the Company's common stock, less a discount, during a calculation period ending on or before June 2014. The Company received an initial delivery of 7.2 million shares during the year ended February 1, 2014. On February 14, 2014 the uncollared agreement concluded and the Company received an additional 1.9 million shares resulting in a total of 9.1 million shares repurchased under this agreement. | |||||||||||||
On November 21, 2011, the Company entered into an agreement to repurchase $300.0 million of the Company’s common shares under a “collared” Accelerated Share Repurchase Agreement (ASR). Under this agreement, the Company initially received 6.8 million shares through December 13, 2011, representing the minimum number of shares to be received based on a calculation using the “cap” or high-end of the price range of the “collar.” The ASR concluded on March 28, 2012 and the Company received an additional 0.5 million shares under the "collared" agreement resulting in 7.3 million total shares being repurchased under this ASR. The number of shares was determined based on the weighted average market price of the Company's common stock, less a discount, during a specified period of time. | |||||||||||||
The Company did not repurchase any shares of common stock on the open market in 2014. The Company repurchased 2.4 million shares for $112.1 million on the open market in fiscal 2013 and 7.7 million shares for $340.2 million on the open market in fiscal 2012. At January 31, 2015, the Company had $1.0 billion remaining under Board repurchase authorization. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||
Jan. 31, 2015 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS | ||
Profit Sharing and 401(k) Retirement Plan | |||
The Company maintains a defined contribution profit sharing and 401(k) plan which is available to all employees over 21 years of age who have completed one year of service in which they have worked at least 1,000 hours. Eligible employees may make elective salary deferrals. The Company may make contributions at its discretion. | |||
Contributions to and reimbursements by the Company of expenses of the plan included in "selling, general and administrative expenses" in the accompanying consolidated income statements were as follows: | |||
Year ended January 31, 2015 | $41.1 million | ||
Year ended February 1, 2014 | $35.8 million | ||
Year ended February 2, 2013 | $40.7 million | ||
Eligible employees vest in the Company’s profit sharing contributions based on the following schedule: | |||
Ÿ | 20% after two years of service | ||
Ÿ | 40% after three years of service | ||
Ÿ | 60% after four years of service | ||
Ÿ | 100% after five years of service | ||
All eligible employees are immediately vested in any Company match contributions under the 401(k) portion of the plan. | |||
Deferred Compensation Plan | |||
The Company has a deferred compensation plan which provides certain officers and executives the ability to defer a portion of their base compensation and bonuses and invest their deferred amounts. The plan is a nonqualified plan and the Company may make discretionary contributions. The deferred amounts and earnings thereon are payable to participants, or designated beneficiaries, at specified future dates, or upon retirement or death. Total cumulative participant deferrals and earnings were approximately $5.5 million and $5.1 million, respectively, at January 31, 2015 and February 1, 2014, and are included in "other liabilities" on the accompanying consolidated balance sheets. The related assets are included in "other assets, net" on the accompanying consolidated balance sheets. The Company did not make any discretionary contributions in the years ended January 31, 2015, February 1, 2014, or February 2, 2013. |
STOCKBASED_COMPENSATION_PLAN
STOCK-BASED COMPENSATION PLAN | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
STOCK-BASED COMPENSATION PLAN | STOCK-BASED COMPENSATION PLANS | ||||||||||||||||
Fixed Stock Option Compensation Plans | |||||||||||||||||
Under the Equity Incentive Plan (EIP), the Company granted up to 18.0 million shares of its Common Stock, plus any shares available for future awards under the 1995 Stock Incentive Plan, to the Company’s employees, including executive officers and independent contractors. The EIP permitted the Company to grant equity awards in the form of stock options, stock appreciation rights and restricted stock. The exercise price of each stock option granted equaled the market price of the Company’s stock at the date of grant. The options generally vested over a three -year period and have a maximum term of 10 years. This plan was terminated on June 16, 2011 and replaced with the Company’s Omnibus Incentive Plan (Omnibus Plan). | |||||||||||||||||
The Executive Officer Equity Incentive Plan (EOEP) was available only to the Chief Executive Officer and certain other executive officers. These officers no longer received awards under the EIP. The EOEP allowed the Company to grant the same type of equity awards as the EIP. These awards generally vested over a three-year period, with a maximum term of 10 years for stock options. This plan was terminated on June 16, 2011 and replaced with the Omnibus Plan. | |||||||||||||||||
Stock appreciation rights may be awarded alone or in tandem with stock options. When the stock appreciation rights are exercisable, the holder may surrender all or a portion of the unexercised stock appreciation right and receive in exchange an amount equal to the excess of the fair market value at the date of exercise over the fair market value at the date of the grant. No stock appreciation rights have been granted to date. | |||||||||||||||||
Any restricted stock or RSUs awarded are subject to certain general restrictions. The restricted stock shares or units may not be sold, transferred, pledged or disposed of until the restrictions on the shares or units have lapsed or have been removed under the provisions of the plan. In addition, if a holder of restricted shares or units ceases to be employed by the Company, any shares or units in which the restrictions have not lapsed will be forfeited. | |||||||||||||||||
The 2003 Non-Employee Director Stock Option Plan (NEDP) provided non-qualified stock options to non-employee members of the Company's Board of Directors. The stock options were functionally equivalent to the options issued under the EIP discussed above. The exercise price of each stock option granted equaled the closing market price of the Company’s stock on the date of grant. The options generally vested immediately. This plan was terminated on June 16, 2011 and replaced with the Omnibus Plan. | |||||||||||||||||
The 2003 Director Deferred Compensation Plan permits any of the Company's directors who receive a retainer or other fees for Board or Board committee service to defer all or a portion of such fees until a future date, at which time they may be paid in cash or shares of the Company's common stock, or receive all or a portion of such fees in non-statutory stock options. Deferred fees that are paid out in cash will earn interest at the 30-year Treasury Bond Rate. If a director elects to be paid in common stock, the number of shares will be determined by dividing the deferred fee amount by the closing market price of a share of the Company's common stock on the date of deferral. The number of options issued to a director will equal the deferred fee amount divided by 33% of the price of a share of the Company's common stock. The exercise price will equal the fair market value of the Company's common stock at the date the option is issued. The options are fully vested when issued and have a term of 10 years. | |||||||||||||||||
Under the Omnibus Plan, the Company may grant up to 4.0 million shares of its Common Stock, plus any shares available for future awards under the EIP, EOEP, or NEDP plans, to the Company’s employees, including executive officers and independent contractors. The Omnibus Plan permits the Company to grant equity awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance bonuses, performance units, non-employee director stock options and other equity-related awards. These awards generally vest over a three-year period with a maximum term of 10 years. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
The Company granted 0.5 million, 0.5 million and 0.5 million service-based RSUs, net of forfeitures in 2014, 2013 and 2012, respectively, from the Omnibus Plan to the Company’s employees and officers. The fair value of all of these RSUs is being expensed ratably over the three-year vesting periods, or shorter periods based on the retirement eligibility of certain grantees. The fair value was determined using the Company’s closing stock price on the date of grant. The Company recognized $22.2 million, $21.1 million and $21.9 million of expense related to service-based RSUs during 2014, 2013 and 2012, respectively. As of January 31, 2015, there was approximately $21.7 million of total unrecognized compensation expense related to these RSUs which is expected to be recognized over a weighted-average period of 21 months. | |||||||||||||||||
In 2014, the Company granted 0.2 million RSUs from the Omnibus Plan to certain officers of the Company, contingent on the Company meeting certain performance targets in 2014 and future service of these officers through March 2017. The Company met these performance targets in fiscal 2014; therefore, the fair value of these RSUs of $10.0 million is being expensed over the service period or a shorter period based on the retirement eligibility of the grantee. The Company recognized $6.7 million of expense related to these RSUs in 2014. The fair value of these RSUs was determined using the Company’s closing stock price on the grant date. | |||||||||||||||||
In 2013, the Company granted 0.2 million RSUs from the Omnibus Plan to certain officers of the Company, contingent on the Company meeting certain performance targets in 2013 and future service of these officers through March 2016. The Company met these performance targets in fiscal 2013; therefore, the fair value of these RSUs of $9.9 million is being expensed over the service period or a shorter period based on the retirement eligibility of the grantee. The Company recognized $1.1 million and $6.5 million of expense related to these RSUs in 2014 and 2013, respectively. The fair value of these RSUs was determined using the Company’s closing stock price on the grant date. | |||||||||||||||||
In 2012, the Company granted 0.2 million RSUs from the Omnibus Plan to certain officers of the Company, contingent on the Company meeting certain performance targets in 2012 and future service of these officers through March 2015. The Company met these performance targets in fiscal 2012; therefore, the fair value of these RSUs of $8.1 million is being expensed over the service period or a shorter period based on the retirement eligibility of the grantee. The Company recognized $0.9 million, $1.1 million and $5.7 million of expense related to these RSUs in 2014, 2013 and 2012, respectively. The fair value of these RSUs was determined using the Company’s closing stock price on the grant date. | |||||||||||||||||
In 2014, the Company granted RSUs with an estimated fair value of $2.0 million from the Omnibus Plan to certain officers of the Company. Each officer has the opportunity to earn an amount between zero percent (0%) and two hundred percent (200%) of the individual target award contingent on the Company meeting certain performance targets for the period beginning on February 2, 2014 and ending on January 28, 2017. Providing the vesting conditions are satisfied, the awards will vest at the end of the performance period. The estimated fair value of these RSUs is being expensed over the performance period or a shorter period based on the retirement eligibility of the grantee. The Company recognized $1.0 million of expense related to these RSUs in 2014. The estimated fair value of these RSUs was determined using the Company's closing stock price on the grant date. | |||||||||||||||||
In 2013, the Company granted RSUs with an estimated fair value of $1.7 million from the Omnibus Plan to certain officers of the Company. Each officer has the opportunity to earn an amount between zero percent (0%) and two hundred percent (200%) of the individual target award contingent on the Company meeting certain performance targets for the period beginning on February 3, 2013 and ending on January 30, 2016. Providing the vesting conditions are satisfied, the awards will vest at the end of the performance period. The estimated value is being expensed over the performance period or a shorter period based on the retirement eligibility of the grantee. The Company recognized $0.4 million and $1.0 million of expense related to these RSUs in 2014 and 2013. The estimated fair value of these RSUs was determined using the Company's closing stock price on the grant date. | |||||||||||||||||
In 2012, the Company granted RSUs with an estimated fair value of $1.7 million from the Omnibus Plan to certain officers of the Company. Each officer had the opportunity to earn an amount between zero percent (0%) and two hundred percent (200%) of the individual target award contingent on the Company meeting certain performance targets for the period beginning on January 29, 2012 and ending on January 31, 2015. The estimated fair value was being expensed over the performance period or a shorter period based on the retirement eligibility of the grantee. The Company recognized $0.2 million, $0.2 million and $1.0 million of expense related on these RSUs in 2014, 2013 and 2012, respectively. The estimated fair value of these RSUs was determined using the Company’s closing stock price on the grant date. | |||||||||||||||||
In 2012, the Company granted 0.2 million RSUs with a fair value of $10.0 million from the Omnibus Plan to the Chief Executive Officer of the Company, contingent on the Company meeting certain performance targets for the period beginning July 29, 2012 and ending on August 3, 2013 and the grantee completing a five-year service requirement. The fair value of these RSUs is being expensed ratably over the five-year vesting period. The Company recognized $2.0 million, $2.0 million and $1.3 million of expense related to these RSUs in 2014, 2013 and 2012. The fair value of these RSUs was determined using the Company's closing stock price on the grant date. | |||||||||||||||||
The following table summarizes the status of RSUs as of January 31, 2015, and changes during the year then ended: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Grant | |||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Nonvested at February 1, 2014 | 1,723,634 | $ | 41.64 | ||||||||||||||
Granted | 751,606 | 52.52 | |||||||||||||||
Vested | (798,015 | ) | 39.91 | ||||||||||||||
Forfeited | (93,945 | ) | 48.38 | ||||||||||||||
Nonvested at January 31, 2015 | 1,583,280 | $ | 48.48 | ||||||||||||||
In connection with the vesting of RSUs in 2014, 2013 and 2012, certain employees elected to receive shares net of minimum statutory tax withholding amounts which totaled $15.8 million, $18.6 million and $22.1 million, respectively. The total fair value of the restricted shares vested during the years ended January 31, 2015, February 1, 2014 and February 2, 2013 was $31.8 million, $29.7 million and $26.6 million, respectively. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock options granted in 2014, 2013 and 2012 were to directors under the Director Deferred Compensation Plan, vest immediately and are expensed on the grant date. | |||||||||||||||||
The following tables summarize information about options outstanding at January 31, 2015 and changes during the year then ended. | |||||||||||||||||
Stock Option Activity | |||||||||||||||||
January 31, 2015 | |||||||||||||||||
Weighted | |||||||||||||||||
Average | Weighted | Aggregate | |||||||||||||||
Per Share | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value (in | |||||||||||||||
Shares | Price | Term | millions) | ||||||||||||||
Outstanding, beginning of period | 568,818 | $ | 13.4 | ||||||||||||||
Granted | 12,150 | 57.37 | |||||||||||||||
Exercised | (85,235 | ) | 9.04 | ||||||||||||||
Forfeited | (4,500 | ) | 8.42 | ||||||||||||||
Outstanding, end of period | 491,233 | $ | 15.29 | 3.4 | $ | 27.4 | |||||||||||
Options vested | |||||||||||||||||
at January 31, 2015 | 491,233 | $ | 15.29 | 3.4 | $ | 27.4 | |||||||||||
Options exercisable at end of period | 491,233 | $ | 15.29 | 3.4 | $ | 27.4 | |||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Options | Options | ||||||||||||||||
Range of | Outstanding | Weighted Avg. | Weighted Avg. | Exercisable | Weighted Avg. | ||||||||||||
Exercise | at January 31, | Remaining | Exercise | at January 31, | Exercise | ||||||||||||
Prices | 2015 | Contractual Life | Price | 2015 | Price | ||||||||||||
$7.21 to $9.71 | 216,105 | 2.1 | $ | 8.88 | 216,105 | $ | 8.88 | ||||||||||
$9.72 to $14.52 | 192,214 | 3.5 | 13.07 | 192,214 | 13.07 | ||||||||||||
$14.53 to $19.93 | 15,516 | 4.9 | 17.21 | 15,516 | 17.21 | ||||||||||||
$19.94 to $28.36 | 21,132 | 5.8 | 25.09 | 21,132 | 25.09 | ||||||||||||
$28.37 to $70.38 | 46,266 | 8.1 | 49.29 | 46,266 | 49.29 | ||||||||||||
$7.21 to $70.38 | 491,233 | 3.4 | $ | 15.29 | 491,233 | $ | 15.29 | ||||||||||
The intrinsic value of options exercised during 2014, 2013 and 2012 was approximately $3.7 million, $5.6 million and $21.8 million, respectively. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Under the Dollar Tree, Inc. Employee Stock Purchase Plan (ESPP), the Company is authorized to issue up to 5,278,125 shares of Common Stock to eligible employees. Under the terms of the ESPP, employees can choose to have up to 10% of their annual base earnings withheld to purchase the Company's common stock. The purchase price of the stock is 85% of the lower of the price at the beginning or the end of the quarterly offering period. Under the ESPP, the Company has sold 4,786,751 shares as of January 31, 2015. | |||||||||||||||||
The fair value of the employees' purchase rights is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||||||||||
Fiscal 2013 | Fiscal 2012 | Fiscal 2011 | |||||||||||||||
Expected term | 3 months | 3 months | 3 months | ||||||||||||||
Expected volatility | 8.8 | % | 11.6 | % | 11.9 | % | |||||||||||
Annual dividend yield | — | % | — | % | — | % | |||||||||||
Risk free interest rate | — | % | — | % | 0.1 | % | |||||||||||
The weighted average per share fair value of purchase rights granted in 2014, 2013 and 2012 was $8.17, $8.26 and $6.97, respectively. Total expense recognized for these purchase rights was $0.8 million in 2014,$1.0 million in 2013 and $0.9 million in 2012. |
SALES_OF_INVESTMENT
SALES OF INVESTMENT | 12 Months Ended |
Jan. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SALE OF INVESTMENT | SALE OF INVESTMENT |
On September 28, 2012, the Company sold its ownership interest in Ollie's Holdings, Inc., which it originally acquired in 2003. As a result of the sale, the Company recorded a pre-tax gain of $60.8 million in 2012 which is included in “Other (income) expense, net” on the accompanying consolidated income statements. The gain, net of tax, was $38.1 million and increased earnings per diluted share for 2012 by $0.16. |
PENDING_ACQUISITION_AND_RELATE
PENDING ACQUISITION AND RELATED DEBT (Notes) | 12 Months Ended |
Jan. 31, 2015 | |
Pending Acquisition and Related Debt [Abstract] | |
Pending Acquisition and Related Debt | PENDING ACQUISITION AND RELATED DEBT |
Pending Acquisition | |
On July 27, 2014, the Company executed an Agreement and Plan of Merger to acquire Family Dollar in a cash and stock transaction (the "Acquisition"). Under the Acquisition, which has been unanimously approved by the Boards of Directors of both companies, the Family Dollar shareholders will receive $59.60 in cash plus no more than 0.3036 and no less than 0.2484 shares of the Company's common stock for each share of Family Dollar common stock they own. The Acquisition was approved by Family Dollar shareholders on January 22, 2015 and is subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and satisfaction or waiver of the other customary closing conditions. | |
On or before closing, the Company expects to incur approximately $210.0 million in acquisition-related expenses, of which $75.2 million were incurred in 2014 including $33.5 million that was paid in 2014. During 2014, $28.5 million of acquisition-related expenses were recorded in "selling, general and administrative expenses" and $46.7 million related to commitment fees were recorded in "interest expense, net." The Company expects to incur an additional $22.6 million in commitment fees in the first quarter of fiscal 2015. The Company also expects to expend approximately $174.0 million in capitalizable debt issuance costs related to the financing of the Acquisition. Of this amount, $70.2 million was included in "other assets, net" at January 31, 2015. In addition, $112.0 million of acquisition-related expenses, capitalizable debt issuance costs and interest expense have been accrued in "other current liabilities" at January 31, 2015. | |
For additional discussion of the Acquisition, please see the "Pending Acquisition" section included in "Part I. Financial Information, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations." of this Form 10-K. | |
Related Debt | |
Acquisition Notes | |
On February 23, 2015, a wholly owned subsidiary of the Company completed the offering of $750,000,000 aggregate principal amount of 5.250% senior notes due 2020 (the “2020 notes”) and $2,500,000,000 aggregate principal amount of 5.750% senior notes due 2023 (the “2023 notes”, and together with the 2020 notes, the “acquisition notes”). The acquisition notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. The acquisition notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws. | |
The Company expects to use the proceeds of the acquisition notes to finance in part the Acquisition. The proceeds of the 2020 notes and the 2023 notes will be held in, and secured by liens on, separate escrow accounts with U.S. Bank National Association, as escrow agent (the “Escrow Agent”), pending consummation of the Acquisition. The Company expects that, in connection with the consummation of the Acquisition, the wholly owned subsidiary that issued the acquisition notes will merge with and into the Company, the Company will assume the obligations in respect of the acquisition notes, and the acquisition notes will be jointly and severally guaranteed on an unsecured, unsubordinated basis, subject to certain exceptions, by each of the Company’s subsidiaries that guarantees the obligations under the Company’s new senior secured credit facilities or certain other indebtedness, including Family Dollar and certain of its subsidiaries. | |
The 2020 notes, which mature on March 1, 2020, were issued pursuant to an indenture, dated as of February 23, 2015, with U.S. Bank National Association, as trustee (the “2020 notes indenture”). The 2023 notes, which mature on March 1, 2023, were issued pursuant to an indenture, dated as of February 23, 2015, with U.S. Bank National Association, as trustee (the “2023 notes indenture”, and together with the 2020 notes indenture, the “indentures”). | |
The indentures provide that if the Acquisition is not consummated before August 28, 2015, if the Escrow Agent has not received certain additional monthly deposits by certain dates, or upon the occurrence of certain other events, the acquisition notes will be subject to a special mandatory redemption at a price of 100% of the gross proceeds of the acquisition notes offered, plus accrued and unpaid interest to, but excluding, the date of redemption. | |
Interest on the acquisition notes is due semiannually on March 1 and September 1 of each year, commencing on September 1, 2015. | |
The indentures contain covenants that, from and after the date of the Acquisition, will limit the ability of the Company and certain of its subsidiaries to, among other things and subject to certain significant exceptions: (i) incur, assume or guarantee additional indebtedness; (ii) declare or pay dividends or make other distributions with respect to, or purchase or otherwise acquire or retire for value, equity interests; (iii) make any principal payment on, or redeem or repurchase, subordinated debt; (iv) make loans, advances or other investments; (v) incur liens; (vi) sell or otherwise dispose of assets, including capital stock of subsidiaries; (vii) consolidate or merge with or into, or sell all or substantially all assets to, another person; and (viii) enter into transactions with affiliates. The indentures also provide for certain events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding acquisition notes under the applicable indenture to be declared immediately due and payable. | |
Credit Facility and Term Loan | |
On March 9, 2015, a wholly owned subsidiary of the Company entered into a credit agreement, with JPMorgan Chase Bank, N.A., as administrative agent, providing for $6,200 million in senior secured credit facilities (the “New Senior Secured Credit Facilities”) consisting of a $1,250 million revolving credit facility (the “New Revolving Credit Facility”) and $4,950 million of term loan facilities (the “New Term Loan Facilities”). The New Term Loan Facilities consist of a $1,000 million Term Loan A tranche and a $3,950 million Term Loan B tranche. The New Revolving Credit Facility and the borrowings under the Term Loan A tranche will mature five years after the closing of the Acquisition, unless any of the 2020 notes remain outstanding as of 91 days prior to their stated maturity, in which case the New Revolving Credit Facility and the borrowings under the Term Loan A tranche will mature at such time. The borrowings under the Term Loan B tranche will mature seven years after the closing of the Acquisition. | |
The proceeds of the borrowings under the Term Loan B tranche were deposited in an escrow account (separate from the escrow accounts related to the acquisition notes) and will be held in escrow prior to the closing of the Acquisition. Upon the consummation of the Acquisition, the Company will become the borrower under the New Senior Secured Credit Facilities and will draw the term loans under the Term Loan A facility and will have the ability to borrow under the New Revolving Credit Facility. | |
The New Senior Secured Credit Facilities will not be guaranteed by the Company or any of its subsidiaries prior to the consummation of the Acquisition, but upon consummation of the Acquisition the New Senior Secured Credit Facilities will be guaranteed by certain of the Company's direct or indirect wholly owned U.S. subsidiaries, including Family Dollar and certain of its subsidiaries (collectively, the “Credit Agreement Guarantors”). Upon the consummation of the Acquisition, the Company expects the New Senior Secured Credit Facilities will be secured by a security interest in substantially all of the assets of the Company and the Credit Agreement Guarantors, subject to certain exceptions. | |
The loans under the Term Loan A tranche and the New Revolving Credit Facility will bear interest at LIBOR plus 2.25% per annum (or a base rate plus 1.25%), and the Term Loan B tranche of the New Senior Secured Credit Facilities will bear interest at LIBOR plus 3.50% per annum (or a base rate plus 2.50%). The Term Loan B tranche will be subject to a “LIBOR floor” of 0.75%. The Term Loan A tranche of the New Term Loan Facilities will require quarterly amortization payments of 1.25% of the original principal amount thereof in the first year following the consummation of the Acquisition, 2.5% of the original principal amount thereof in the second year following the Acquisition, and 3.75% of the original principal amount thereof thereafter and the Term Loan B tranche requires quarterly amortization payments of 0.25% of the original principal amount thereof after the closing of the Acquisition. The New Term Loan Facilities also require mandatory prepayments in connection with certain asset sales and out of excess cash flow, among other things, and subject in each case to certain significant exceptions. The Company expects to pay certain commitment fees in connection with the New Revolving Credit Facility. Additionally, the Term Loan B tranche of the New Term Loan Facilities will require the Company to pay a 1.00% prepayment fee if the loans thereunder are subject to certain repricing transactions before March 9, 2016. | |
The New Senior Secured Credit Facilities contain representations and warranties, events of default and affirmative and negative covenants that apply, in certain circumstances, before and after the closing of the Acquisition and are customary for similar financings. These include, among other things and subject to certain significant exceptions, restrictions on the Company's ability to declare or pay dividends, repay the acquisition notes, create liens, incur additional indebtedness, make investments, dispose of assets and merge or consolidate with any other person. In addition, a financial maintenance covenant based on the Company’s consolidated first lien secured net leverage ratio will apply to the New Revolving Credit Facility and the Term Loan A tranche of the New Term Loan Facilities after the closing of the Acquisition. |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (Unaudited) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (Unaudited) | QUARTERLY FINANCIAL INFORMATION (Unaudited) | ||||||||||||||||
The following table sets forth certain items from the Company's unaudited consolidated income statements for each quarter of fiscal year 2014 and 2013. The unaudited information has been prepared on the same basis as the audited consolidated financial statements appearing elsewhere in this report and includes all adjustments, consisting only of normal recurring adjustments, which management considers necessary for a fair presentation of the financial data shown. The operating results for any quarter are not necessarily indicative of results for a full year or for any future period. | |||||||||||||||||
(dollars in millions, except diluted net income per share data) | First | Second | Third | Fourth | |||||||||||||
Quarter (1) | Quarter | Quarter | Quarter | ||||||||||||||
Fiscal 2014: | |||||||||||||||||
Net sales | $ | 2,000.30 | $ | 2,031.10 | $ | 2,095.20 | $ | 2,475.60 | |||||||||
Gross profit | $ | 696.6 | $ | 694.1 | $ | 725.3 | $ | 918.1 | |||||||||
Operating income | $ | 231.9 | $ | 205 | $ | 219.7 | $ | 383.6 | |||||||||
Net income | $ | 138.3 | $ | 121.5 | $ | 133 | $ | 206.6 | |||||||||
Diluted net income per share | $ | 0.67 | $ | 0.59 | $ | 0.64 | $ | 1 | |||||||||
Stores open at end of quarter | 5,080 | 5,166 | 5,282 | 5,367 | |||||||||||||
Comparable store net sales change | 1.9 | % | 4.4 | % | 5.9 | % | 5.5 | % | |||||||||
Fiscal 2013: | |||||||||||||||||
Net sales | $ | 1,865.80 | $ | 1,854.90 | $ | 1,884.70 | $ | 2,234.90 | |||||||||
Gross profit | $ | 656 | $ | 648.7 | $ | 659.9 | $ | 825.2 | |||||||||
Operating income | $ | 216.6 | $ | 201.3 | $ | 204.3 | $ | 348.2 | |||||||||
Net income | $ | 133.5 | $ | 124.7 | $ | 125.4 | $ | 213 | |||||||||
Diluted net income per share | $ | 0.59 | $ | 0.56 | $ | 0.58 | $ | 1.02 | |||||||||
Stores open at end of quarter | 4,763 | 4,842 | 4,953 | 4,992 | |||||||||||||
Comparable store net sales change | 2.1 | % | 3.7 | % | 3.1 | % | 1.2 | % | |||||||||
(1) Easter was observed on April 20, 2014 and March 31, 2013. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Description of Business | Description of Business | |||||||
Dollar Tree, Inc. (the Company) is the leading operator of discount variety retail stores offering merchandise at the fixed price of $1.00 or less with 5,367 discount variety retail stores in the United States and Canada at January 31, 2015. Below are those accounting policies considered by the Company to be significant. | ||||||||
Principles of Consolidation | Principles of Consolidation | |||||||
The consolidated financial statements include the financial statements of Dollar Tree, Inc., and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||
Foreign Currency | Foreign Currency | |||||||
The functional currencies of the Company’s international subsidiaries are primarily the local currencies of the countries in which the subsidiaries are located. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a component of shareholders’ equity in accumulated other comprehensive loss. Gains and losses from foreign currency transactions, which are included in other income (expense), net have not been significant. | ||||||||
Stock Dividend | Stock Dividend | |||||||
On May 29, 2012, the Company's Board of Directors approved a 2-for-1 stock split in the form of a 100% common stock dividend. New shares were distributed on June 26, 2012 to shareholders of record as of the close of business on June 12, 2012. | ||||||||
Segment Information | Segment Information | |||||||
The Company's retail stores represent a single operating segment based on the way the Company manages its business. Operating decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company’s retail stores sell similar products and services, use similar processes to sell those products and services, and sell their products and services to similar classes of customers. The amounts of long-lived assets and net sales outside of the U.S. were not significant for any of the periods presented. | ||||||||
Fiscal Year | Fiscal Year | |||||||
The Company's fiscal year ends on the Saturday closest to January 31. Any reference herein to "2014" or "Fiscal 2014," “2013” or “Fiscal 2013,” and “2012” or “Fiscal 2012,” relates to as of or for the years ended January 31, 2015, February 1, 2014, and February 2, 2013, respectively. Fiscal 2012 ended on February 2, 2013 and included 53 weeks, commensurate with the retail calendar. Fiscal 2014 and 2013 each included 52 weeks. | ||||||||
Use of Estimates | Use of Estimates | |||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||
Cash and cash equivalents at January 31, 2015 and February 1, 2014 includes $788.6 million and $172.6 million, respectively, of investments primarily in money market securities which are valued at cost, which approximates fair value. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of 3 months or less to be cash equivalents. The majority of payments due from financial institutions for the settlement of debit card and credit card transactions process within 3 business days, and therefore are classified as cash and cash equivalents. | ||||||||
Merchandise Inventory | Merchandise Inventories | |||||||
Merchandise inventories at the Company’s distribution centers are stated at the lower of cost or market, determined on a weighted-average cost basis. Cost is assigned to store inventories using the retail inventory method on a weighted-average basis. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are computed by applying a calculated cost-to-retail ratio to the retail value of inventories. | ||||||||
Costs directly associated with warehousing and distribution are capitalized as merchandise inventories. Total warehousing and distribution costs capitalized into inventory amounted to $44.3 million and $43.2 million at January 31, 2015 and February 1, 2014, respectively. | ||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||
Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: | ||||||||
Buildings | 39 to 40 years | |||||||
Furniture, fixtures and equipment | 3 to 15 years | |||||||
Leasehold improvements and assets held under capital leases are amortized over the estimated useful lives of the respective assets or the committed terms of the related leases, whichever is shorter. Amortization is included in "selling, general and administrative expenses" in the accompanying consolidated income statements. | ||||||||
Costs incurred related to software developed for internal use are capitalized and amortized, generally over 3 years. | ||||||||
Property, plant and equipment, net, as of January 31, 2015 and February 1, 2014 consists of the following: | ||||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Land | $ | 79 | $ | 65.2 | ||||
Buildings | 336.9 | 319.8 | ||||||
Leasehold improvements | 1,068.20 | 960.7 | ||||||
Furniture, fixtures and equipment | 1,385.20 | 1,307.00 | ||||||
Construction in progress | 100.9 | 57.4 | ||||||
Total property, plant and equipment | 2,970.20 | 2,710.10 | ||||||
Less: accumulated depreciation | 1,759.70 | 1,616.10 | ||||||
Total property, plant and equipment, net | $ | 1,210.50 | $ | 1,094.00 | ||||
Goodwill | Goodwill | |||||||
Goodwill is not amortized, but rather tested for impairment at least annually. In addition, goodwill will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The Company performed its annual impairment testing in November 2014 and determined that no impairment loss existed. | ||||||||
Other Assets, Net | Other Assets, Net | |||||||
Other assets, net consists primarily of deferred financing costs, restricted investments and deferred compensation plan assets. Deferred financing costs represent costs directly related to debt issuances and are amortized over the terms of the related debt. Deferred financing costs, net of amortization, were $74.3 million and $4.3 million at January 31, 2015 and February 1, 2014, respectively. Deferred financing costs of $70.2 million relate to debt to be issued in 2015 and were therefore not amortized in 2014. Included in the $70.2 million are $58.4 million of costs which have not been paid and are accrued in "Other current liabilities" on the accompanying balance sheet. Restricted investments were $78.9 million and $87.9 million at January 31, 2015 and February 1, 2014, respectively and were purchased to collateralize long-term insurance obligations. These investments are primarily in tax-exempt money market funds that invest in short-term municipal obligations. These investments are classified as available for sale and are recorded at fair value, which approximates cost. Deferred compensation plan assets were $5.5 million and $5.1 million at January 31, 2015 and February 1, 2014, respectively and are recorded at fair value. | ||||||||
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of | |||||||
The Company reviews its long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets based on discounted cash flows or other readily available evidence of fair value, if any. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In fiscal 2014, 2013 and 2012, the Company recorded charges of $1.5 million, $0.5 million and $0.5 million, respectively, to write down certain assets. These charges are recorded as a component of "selling, general and administrative expenses" in the accompanying consolidated income statements. | ||||||||
Financial Instruments | Financial Instruments | |||||||
The Company utilizes derivative financial instruments to reduce its exposure to market risks from changes in interest rates and diesel fuel costs. By entering into receive-variable, pay-fixed interest rate and diesel fuel swaps, the Company limits its exposure to changes in variable interest rates and diesel fuel prices. The Company is exposed to credit-related losses in the event of non-performance by the counterparty to these instruments but minimizes this risk by entering into transactions with high quality counterparties. Interest rate or diesel fuel cost differentials paid or received on the swaps are recognized as adjustments to interest and freight expense, respectively, in the period earned or incurred. The Company formally documents all hedging relationships, if applicable, and assesses hedge effectiveness both at inception and on an ongoing basis. | ||||||||
Fair Value Measurements | Fair Value Measurements | |||||||
Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: | ||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities; | ||||||||
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and | ||||||||
Level 3 - Unobservable inputs in which there is little or no market data which require the reporting entity to develop its own assumptions. | ||||||||
The Company’s cash and cash equivalents, restricted investments and diesel fuel swaps represent the financial assets and liabilities that were accounted for at fair value as of January 31, 2015 and February 1, 2014. As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The fair value of the Company’s cash and cash equivalents was $864.1 million and $267.7 million as of January 31, 2015 and February 1, 2014, respectively. The fair value of the Company's restricted investments was $78.9 million and $87.9 million as of January 31, 2015 and February 1, 2014, respectively. These fair values were determined using Level 1 measurements in the fair value hierarchy. The fair value of the diesel fuel swaps was a liability of $5.7 million as of January 31, 2015. The Company did not have any active fuel derivative contracts as of February 1, 2014. The fair values of the swaps were estimated using Level 2 measurements in the fair value hierarchy. These estimates used discounted cash flow calculations based upon forward interest-rate yield and diesel cost curves. The curves were obtained from independent pricing services reflecting broker market quotes. | ||||||||
The estimated fair value of the Company’s long-term debt was $700.9 million as of January 31, 2015 and $769.8 million as of February 1, 2014 . The fair value of the Senior Notes is determined through the use of a discounted cash flow analysis using Level 3 inputs as there are no quoted prices in active markets for these notes. The discount rate used in the analysis was based on borrowing rates available to the Company for debt of the same remaining maturities, issued in the same private placement debt market. The carrying value of the Company's Demand Revenue Bonds at February 1, 2014 approximates its fair value because the debt's interest rate varies with market interest rates. | ||||||||
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). The Company recorded impairment charges of $1.5 million, $0.5 million, and $0.5 million in fiscal 2014, 2013 and 2012, respectively, to reduce certain store assets to their estimated fair values. The fair values were determined based on the income approach, in which the Company utilized internal cash flow projections over the life of the underlying lease agreements discounted based on a risk-free rate of return. These measures of fair value, and related inputs, are considered a level 3 approach under the fair value hierarchy. There were no other changes related to level 3 assets. | ||||||||
Lease Accounting | Lease Accounting | |||||||
The Company leases almost all of its retail locations under operating leases. The Company recognizes minimum rent expense beginning when possession of the property is taken from the landlord, which normally includes a construction period prior to store opening. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related rent expense on a straight-line basis and records the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. The Company also receives tenant allowances, which are recorded in deferred rent and are amortized as reductions of rent expense over the terms of the leases. | ||||||||
Revenue Recognition | Revenue Recognition | |||||||
The Company recognizes sales revenue at the time a sale is made to its customer. | ||||||||
Taxes Collected | Taxes Collected | |||||||
The Company reports taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions (i.e., sales tax) on a net (excluded from revenue) basis. | ||||||||
Cost of Sales | Cost of Sales | |||||||
The Company includes the cost of merchandise, warehousing and distribution costs, and certain occupancy costs in cost of sales. | ||||||||
Pre-Opening Costs | Pre-Opening Costs | |||||||
The Company expenses pre-opening costs for new, expanded and relocated stores, as incurred. | ||||||||
Advertising Costs | Advertising Costs | |||||||
The Company expenses advertising costs as they are incurred and they are included in "selling, general and administrative expenses" on the accompanying consolidated income statements. Advertising costs approximated $18.1 million, $14.9 million and $13.5 million for the years ended January 31, 2015, February 1, 2014, and February 2, 2013, respectively. | ||||||||
Income Taxes | Income Taxes | |||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. | ||||||||
The Company recognizes a financial statement benefit for a tax position if it determines that it is more likely than not that the position will be sustained upon examination. | ||||||||
The Company includes interest and penalties in the provision for income tax expense and income taxes payable. The Company does not provide for any penalties associated with tax contingencies unless they are considered probable of assessment. | ||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||
The Company recognizes expense for all share-based payments to employees based on their fair values. Total stock-based compensation expense for 2014, 2013 and 2012 was $37.4 million, $36.2 million and $34.9 million, respectively. | ||||||||
The Company recognizes expense related to the fair value of restricted stock units (RSUs) over the requisite service period on a straight-line basis or a shorter period based on the retirement eligibility of the grantee. The fair value is determined using the closing price of the Company’s common stock on the date of grant. | ||||||||
Net Income Per Share | Net Income Per Share | |||||||
Basic net income per share has been computed by dividing net income by the weighted average number of shares outstanding. Diluted net income per share reflects the potential dilution that could occur assuming the inclusion of dilutive potential shares and has been computed by dividing net income by the weighted average number of shares and dilutive potential shares outstanding. Dilutive potential shares include all outstanding stock options and unvested RSUs after applying the treasury stock method. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |
Jan. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Property, Plant and Equipment Table | Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: | |
Buildings | 39 to 40 years | |
Furniture, fixtures and equipment | 3 to 15 years |
BALANCE_SHEET_COMPONENTS_Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
Property, Plant and Equipment, Net | Property, Plant and Equipment | |||||||
Property, plant and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets as follows: | ||||||||
Buildings | 39 to 40 years | |||||||
Furniture, fixtures and equipment | 3 to 15 years | |||||||
Leasehold improvements and assets held under capital leases are amortized over the estimated useful lives of the respective assets or the committed terms of the related leases, whichever is shorter. Amortization is included in "selling, general and administrative expenses" in the accompanying consolidated income statements. | ||||||||
Costs incurred related to software developed for internal use are capitalized and amortized, generally over 3 years. | ||||||||
Property, plant and equipment, net, as of January 31, 2015 and February 1, 2014 consists of the following: | ||||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Land | $ | 79 | $ | 65.2 | ||||
Buildings | 336.9 | 319.8 | ||||||
Leasehold improvements | 1,068.20 | 960.7 | ||||||
Furniture, fixtures and equipment | 1,385.20 | 1,307.00 | ||||||
Construction in progress | 100.9 | 57.4 | ||||||
Total property, plant and equipment | 2,970.20 | 2,710.10 | ||||||
Less: accumulated depreciation | 1,759.70 | 1,616.10 | ||||||
Total property, plant and equipment, net | $ | 1,210.50 | $ | 1,094.00 | ||||
Other Assets | Other assets as of January 31, 2015 and February 1, 2014 consist of the following: | |||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Deferred financing costs, net | $ | 74.3 | $ | 4.3 | ||||
Other intangible assets, net | 1.5 | 2.5 | ||||||
Long-term federal income tax benefit | 2.2 | 1.9 | ||||||
Restricted investments | 78.9 | 87.9 | ||||||
Other long-term assets | 9.8 | 9.4 | ||||||
Total other assets | $ | 166.7 | $ | 106 | ||||
Other Current Liabilities Table | Other current liabilities as of January 31, 2015 and February 1, 2014 consist of accrued expenses for the following: | |||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Compensation and benefits | $ | 108.6 | $ | 95.3 | ||||
Taxes (other than income taxes) | 30.6 | 26.4 | ||||||
Insurance | 42.7 | 34.1 | ||||||
Accrued deferred financing costs | 58.4 | — | ||||||
Accrued interest | 48.3 | 2 | ||||||
Other | 96.7 | 74.5 | ||||||
Total other current liabilities | $ | 385.3 | $ | 232.3 | ||||
Other Long-Term Liabilities Table | Other long-term liabilities as of January 31, 2015 and February 1, 2014 consist of the following: | |||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
Deferred rent | $ | 91.9 | $ | 86.3 | ||||
Insurance | 51.8 | 54.7 | ||||||
Other | 13.2 | 11.4 | ||||||
Total other long-term liabilities | $ | 156.9 | $ | 152.4 | ||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Tax Expense (Benefit), Intraperiod Tax Allocation Table | Total income taxes were allocated as follows: | |||||||||||
Year Ended | ||||||||||||
(in millions) | 31-Jan-15 | 1-Feb-14 | 2-Feb-13 | |||||||||
Income from continuing operations | $ | 355 | $ | 357.6 | $ | 359.6 | ||||||
Shareholders' equity, tax benefit on | ||||||||||||
exercises/vesting of equity-based | ||||||||||||
compensation | (4.5 | ) | (9.8 | ) | (21.3 | ) | ||||||
$ | 350.5 | $ | 347.8 | $ | 338.3 | |||||||
Income tax provision (benefit) Table | The provision for income taxes consists of the following: | |||||||||||
Year Ended | ||||||||||||
January 31, | February 1, | February 2, | ||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Federal - current | $ | 325.1 | $ | 304.6 | $ | 324.5 | ||||||
State - current | 47.6 | 45.9 | 42.4 | |||||||||
Foreign - current | 0.4 | 0.4 | 0.5 | |||||||||
Total current | 373.1 | 350.9 | 367.4 | |||||||||
Federal - deferred | (9.7 | ) | 10.5 | 0.3 | ||||||||
State - deferred | (3.2 | ) | 0.9 | (3.5 | ) | |||||||
Foreign - deferred | (5.2 | ) | (4.7 | ) | (4.6 | ) | ||||||
Total deferred | $ | (18.1 | ) | $ | 6.7 | $ | (7.8 | ) | ||||
Federal statutory tax rate reconciliation Table | A reconciliation of the statutory federal income tax rate and the effective rate follows: | |||||||||||
Year Ended | ||||||||||||
31-Jan-15 | 1-Feb-14 | 2-Feb-13 | ||||||||||
Statutory tax rate | 35 | % | 35 | % | 35 | % | ||||||
Effect of: | ||||||||||||
State and local income taxes, | ||||||||||||
net of federal income tax benefit | 3.3 | 3.3 | 3 | |||||||||
Other, net | (1.1 | ) | (0.8 | ) | (1.3 | ) | ||||||
Effective tax rate | 37.2 | % | 37.5 | % | 36.7 | % | ||||||
Components of Deferred Tax Assets and Liabilities Table | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are classified on the accompanying consolidated balance sheets based on the classification of the underlying asset or liability. Significant components of the Company's net deferred tax assets (liabilities) follow: | |||||||||||
(in millions) | January 31, | February 1, | ||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Deferred rent | $ | 41 | $ | 38.2 | ||||||||
Accrued expenses | 37.6 | 34.2 | ||||||||||
Net operating losses and credit carryforwards | 31 | 19.3 | ||||||||||
Accrued compensation expense | 33.8 | 29.5 | ||||||||||
Other | 5.1 | 0.6 | ||||||||||
Total deferred tax assets | 148.5 | 121.8 | ||||||||||
Valuation allowance | (13.8 | ) | (6.0 | ) | ||||||||
Deferred tax assets, net | 134.7 | 115.8 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (48.7 | ) | (46.6 | ) | ||||||||
Goodwill | (18.7 | ) | (16.9 | ) | ||||||||
Prepaid expenses | (3.0 | ) | (3.7 | ) | ||||||||
Inventory | (5.4 | ) | (5.6 | ) | ||||||||
Total deferred tax liabilities | (75.8 | ) | (72.8 | ) | ||||||||
Net deferred tax asset | $ | 58.9 | $ | 43 | ||||||||
Reconciliation of Unrecognized Tax Benefits Table | The balance for unrecognized tax benefits at January 31, 2015, was $6.5 million. The total amount of unrecognized tax benefits at January 31, 2015, that, if recognized, would affect the effective tax rate was $4.3 million (net of the federal tax benefit). The following is a reconciliation of the Company’s total gross unrecognized tax benefits: | |||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Beginning Balance | $ | 5.5 | $ | 5.6 | ||||||||
Additions, based on tax positions related to current year | 0.6 | 0.2 | ||||||||||
Additions for tax positions of prior years | 0.9 | 0.8 | ||||||||||
Reductions for tax positions of prior years | — | (0.2 | ) | |||||||||
Settlements | — | (0.3 | ) | |||||||||
Lapses in statutes of limitation | (0.5 | ) | (0.6 | ) | ||||||||
Ending balance | $ | 6.5 | $ | 5.5 | ||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Operating Lease Commitments Table | Future minimum lease payments under noncancelable store and distribution center operating leases are as follows: | |||||||||||
(in millions) | ||||||||||||
2015 | $ | 558.6 | ||||||||||
2016 | 521.8 | |||||||||||
2017 | 469.8 | |||||||||||
2018 | 335.7 | |||||||||||
2019 | 244.1 | |||||||||||
Thereafter | 492.5 | |||||||||||
Total minimum lease payments | $ | 2,622.50 | ||||||||||
Minimum and Contingent Rentals Table | Rental expense for store and distribution center operating leases (including payments to related parties) included in the accompanying consolidated income statements are as follows: | |||||||||||
Year Ended | ||||||||||||
January 31, | February 1, | February 2, | ||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Minimum rentals | $ | 536.5 | $ | 496.4 | $ | 455.5 | ||||||
Contingent rentals | 1.8 | 1.8 | 2 | |||||||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-Term Debt Instruments Table | Long-term debt at January 31, 2015 and February 1, 2014 consists of the following: | |||||||
January 31, | February 1, | |||||||
(in millions) | 2015 | 2014 | ||||||
$750.0 million Senior Notes, | $ | 750 | $ | 750 | ||||
fixed interest rates payable semi-annually, January 15 and July 15 | ||||||||
$750.0 million Unsecured Credit Agreement, | ||||||||
interest payable monthly at LIBOR, | ||||||||
plus 0.90%, which was 1.07% at | ||||||||
31-Jan-15 | — | — | ||||||
Demand Revenue Bonds, repaid March 2014 | — | 12.8 | ||||||
$7.0 million Forgivable Promissory Note, interest payable | ||||||||
beginning in November 2017 at a rate of 1%, | ||||||||
principal payable beginning November 2017 | 7 | 7 | ||||||
Total long-term debt | $ | 757 | $ | 769.8 | ||||
Less current portion | — | 12.8 | ||||||
Long-term debt, excluding current portion | $ | 757 | $ | 757 | ||||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Net Income Per Share Table | The following table sets forth the calculation of basic and diluted net income per share: | ||||||||||||
Year Ended | |||||||||||||
January 31, | February 1, | February 2, | |||||||||||
(in millions, except per share data) | 2015 | 2014 | 2013 | ||||||||||
Basic net income per share: | |||||||||||||
Net income | $ | 599.2 | $ | 596.7 | $ | 619.3 | |||||||
Weighted average number of shares | |||||||||||||
outstanding | 206 | 218.1 | 229.3 | ||||||||||
Basic net income per share | $ | 2.91 | $ | 2.74 | $ | 2.7 | |||||||
Diluted net income per share: | |||||||||||||
Net income | $ | 599.2 | $ | 596.7 | $ | 619.3 | |||||||
Weighted average number of shares | |||||||||||||
outstanding | 206 | 218.1 | 229.3 | ||||||||||
Dilutive effect of stock options and | |||||||||||||
restricted stock (as determined by | |||||||||||||
applying the treasury stock method) | 1 | 1 | 1.4 | ||||||||||
Weighted average number of shares and | |||||||||||||
dilutive potential shares outstanding | 207 | 219.1 | 230.7 | ||||||||||
Diluted net income per share | $ | 2.9 | $ | 2.72 | $ | 2.68 | |||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||
Jan. 31, 2015 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Defined Contribution Plan Expenses Table | Contributions to and reimbursements by the Company of expenses of the plan included in "selling, general and administrative expenses" in the accompanying consolidated income statements were as follows: | ||
Year ended January 31, 2015 | $41.1 million | ||
Year ended February 1, 2014 | $35.8 million | ||
Year ended February 2, 2013 | $40.7 million | ||
Defined Contribution Plan Vesting Schedule Table | Eligible employees vest in the Company’s profit sharing contributions based on the following schedule: | ||
Ÿ | 20% after two years of service | ||
Ÿ | 40% after three years of service | ||
Ÿ | 60% after four years of service | ||
Ÿ | 100% after five years of service |
STOCKBASED_COMPENSATION_PLAN_T
STOCK-BASED COMPENSATION PLAN (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the status of RSUs as of January 31, 2015, and changes during the year then ended: | ||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Grant | |||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Nonvested at February 1, 2014 | 1,723,634 | $ | 41.64 | ||||||||||||||
Granted | 751,606 | 52.52 | |||||||||||||||
Vested | (798,015 | ) | 39.91 | ||||||||||||||
Forfeited | (93,945 | ) | 48.38 | ||||||||||||||
Nonvested at January 31, 2015 | 1,583,280 | $ | 48.48 | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following tables summarize information about options outstanding at January 31, 2015 and changes during the year then ended. | ||||||||||||||||
Stock Option Activity | |||||||||||||||||
January 31, 2015 | |||||||||||||||||
Weighted | |||||||||||||||||
Average | Weighted | Aggregate | |||||||||||||||
Per Share | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value (in | |||||||||||||||
Shares | Price | Term | millions) | ||||||||||||||
Outstanding, beginning of period | 568,818 | $ | 13.4 | ||||||||||||||
Granted | 12,150 | 57.37 | |||||||||||||||
Exercised | (85,235 | ) | 9.04 | ||||||||||||||
Forfeited | (4,500 | ) | 8.42 | ||||||||||||||
Outstanding, end of period | 491,233 | $ | 15.29 | 3.4 | $ | 27.4 | |||||||||||
Options vested | |||||||||||||||||
at January 31, 2015 | 491,233 | $ | 15.29 | 3.4 | $ | 27.4 | |||||||||||
Options exercisable at end of period | 491,233 | $ | 15.29 | 3.4 | $ | 27.4 | |||||||||||
Schedule of options outstanding and exercisable, by range of exercise prices | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Options | Options | ||||||||||||||||
Range of | Outstanding | Weighted Avg. | Weighted Avg. | Exercisable | Weighted Avg. | ||||||||||||
Exercise | at January 31, | Remaining | Exercise | at January 31, | Exercise | ||||||||||||
Prices | 2015 | Contractual Life | Price | 2015 | Price | ||||||||||||
$7.21 to $9.71 | 216,105 | 2.1 | $ | 8.88 | 216,105 | $ | 8.88 | ||||||||||
$9.72 to $14.52 | 192,214 | 3.5 | 13.07 | 192,214 | 13.07 | ||||||||||||
$14.53 to $19.93 | 15,516 | 4.9 | 17.21 | 15,516 | 17.21 | ||||||||||||
$19.94 to $28.36 | 21,132 | 5.8 | 25.09 | 21,132 | 25.09 | ||||||||||||
$28.37 to $70.38 | 46,266 | 8.1 | 49.29 | 46,266 | 49.29 | ||||||||||||
$7.21 to $70.38 | 491,233 | 3.4 | $ | 15.29 | 491,233 | $ | 15.29 | ||||||||||
Weighted average assumptions | The fair value of the employees' purchase rights is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: | ||||||||||||||||
Fiscal 2013 | Fiscal 2012 | Fiscal 2011 | |||||||||||||||
Expected term | 3 months | 3 months | 3 months | ||||||||||||||
Expected volatility | 8.8 | % | 11.6 | % | 11.9 | % | |||||||||||
Annual dividend yield | — | % | — | % | — | % | |||||||||||
Risk free interest rate | — | % | — | % | 0.1 | % |
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information Table | The operating results for any quarter are not necessarily indicative of results for a full year or for any future period. | ||||||||||||||||
(dollars in millions, except diluted net income per share data) | First | Second | Third | Fourth | |||||||||||||
Quarter (1) | Quarter | Quarter | Quarter | ||||||||||||||
Fiscal 2014: | |||||||||||||||||
Net sales | $ | 2,000.30 | $ | 2,031.10 | $ | 2,095.20 | $ | 2,475.60 | |||||||||
Gross profit | $ | 696.6 | $ | 694.1 | $ | 725.3 | $ | 918.1 | |||||||||
Operating income | $ | 231.9 | $ | 205 | $ | 219.7 | $ | 383.6 | |||||||||
Net income | $ | 138.3 | $ | 121.5 | $ | 133 | $ | 206.6 | |||||||||
Diluted net income per share | $ | 0.67 | $ | 0.59 | $ | 0.64 | $ | 1 | |||||||||
Stores open at end of quarter | 5,080 | 5,166 | 5,282 | 5,367 | |||||||||||||
Comparable store net sales change | 1.9 | % | 4.4 | % | 5.9 | % | 5.5 | % | |||||||||
Fiscal 2013: | |||||||||||||||||
Net sales | $ | 1,865.80 | $ | 1,854.90 | $ | 1,884.70 | $ | 2,234.90 | |||||||||
Gross profit | $ | 656 | $ | 648.7 | $ | 659.9 | $ | 825.2 | |||||||||
Operating income | $ | 216.6 | $ | 201.3 | $ | 204.3 | $ | 348.2 | |||||||||
Net income | $ | 133.5 | $ | 124.7 | $ | 125.4 | $ | 213 | |||||||||
Diluted net income per share | $ | 0.59 | $ | 0.56 | $ | 0.58 | $ | 1.02 | |||||||||
Stores open at end of quarter | 4,763 | 4,842 | 4,953 | 4,992 | |||||||||||||
Comparable store net sales change | 2.1 | % | 3.7 | % | 3.1 | % | 1.2 | % |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
29-May-12 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Property, Plant and Equipment [Line Items] | ||||
Fixed price of merchandise | $1 | |||
Discount variety retail stores owned and operated | 5,367 | |||
Common stock dividend (in hundredths) | 100.00% | |||
Stock split conversion ratio | 2 | |||
Money market securities valued at cost, in Cash and cash equivalents | 788,600,000 | 172,600,000 | ||
Debt instruments with original maturities in months, considered cash equivalents, range maximum (in months) | 3 months | |||
Settlement of debit card and credit card transaction process business days, range maximum (in business days) | 3 days | |||
Warehousing and distribution costs capitalized into inventory | 44,300,000 | 43,200,000 | ||
Software amortization period (in years) | 3 years | |||
Deferred Finance Costs, Noncurrent, Net | 74,300,000 | 4,300,000 | ||
Deferred Finance Costs, Current, Gross | 70,200,000 | |||
Accrued deferred financing costs | 58,400,000 | 0 | ||
Restricted investments | 78,900,000 | 87,900,000 | ||
Deferred Compensation Plan Assets | 5,500,000 | 5,100,000 | ||
Impairment charge for certain store assets | 1,500,000 | 500,000 | 500,000 | |
Cash and cash equivalents fair value | 864,100,000 | 267,700,000 | ||
Restricted investments fair value | 78,900,000 | 87,900,000 | ||
Fair value of diesel fuel swap | 5,700,000 | |||
Long-term Debt, Fair Value | 700,900,000 | 769,800,000 | ||
Advertising costs | 18,100,000 | 14,900,000 | 13,500,000 | |
Stock-based compensation expense | $37,400,000 | $36,200,000 | $34,900,000 | |
Buildings [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 39 years | |||
Buildings [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 40 years | |||
Furniture, fixtures and equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 3 years | |||
Furniture, fixtures and equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 15 years |
BALANCE_SHEET_COMPONENTS_Detai
BALANCE SHEET COMPONENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Property, Plant and Equipment, Net | |||
Gross property, plant and equipment | $2,970.20 | $2,710.10 | |
Less: accumulated depreciation | 1,759.70 | 1,616.10 | |
Total property, plant and equipment, net | 1,210.50 | 1,094 | |
Depreciation expense | 206 | 190.7 | 175.4 |
Other Assets, Noncurrent | |||
Deferred Finance Costs, Noncurrent, Net | 74.3 | 4.3 | |
Other Intangible Assets, Net | 1.5 | 2.5 | |
Federal Income Tax Benefit | 2.2 | 1.9 | |
Restricted Investments | 78.9 | 87.9 | |
Long-Lived Assets | 9.8 | 9.4 | |
Total other assets | 166.7 | 106 | |
Other Current Liabilities | |||
Compensation and benefits | 108.6 | 95.3 | |
Taxes (other than income taxes) | 30.6 | 26.4 | |
Insurance | 42.7 | 34.1 | |
Accrued deferred financing costs | 58.4 | 0 | |
Interest Payable, Current | 48.3 | 2 | |
Other | 96.7 | 74.5 | |
Total other current liabilities | 385.3 | 232.3 | |
Other Long-Term Liabilities | |||
Deferred rent | 91.9 | 86.3 | |
Insurance | 51.8 | 54.7 | |
Other | 13.2 | 11.4 | |
Total other long-term liabilities | 156.9 | 152.4 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Land | 79 | 65.2 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Buildings and Improvements, Gross | 336.9 | 319.8 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Leasehold Improvements, Gross | 1,068.20 | 960.7 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment, Net | |||
Gross property, plant and equipment | 1,385.20 | 1,307 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment, Net | |||
Gross property, plant and equipment | $100.90 | $57.40 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Tax Expense (Benefit), Intraperiod Tax Allocation | |||
Income from continuing operations | $355 | $357.60 | $359.60 |
Stockholders' equity, tax benefit on exercises/vesting of equity based compensation | -4.5 | -9.8 | -21.3 |
Total allocated income tax | 350.5 | 347.8 | 338.3 |
Income tax provision (benefit) | |||
Federal - current | 325.1 | 304.6 | 324.5 |
State - current | 47.6 | 45.9 | 42.4 |
Foreign - current | 0.4 | 0.4 | 0.5 |
Total current | 373.1 | 350.9 | 367.4 |
Federal - deferred | -9.7 | 10.5 | 0.3 |
State - deferred | -3.2 | 0.9 | -3.5 |
Foreign - deferred | -5.2 | -4.7 | -4.6 |
Total deferred | -18.1 | 6.7 | -7.8 |
Federal Statutory Tax Rate Reconciliation | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Effect of: | |||
State and local income taxes, net of federal income tax benefit (in hundredths) | 3.30% | 3.30% | 3.00% |
Other, net | -1.10% | -0.80% | -1.30% |
Effective tax rate | 37.20% | 37.50% | 36.70% |
Deferred tax assets: | |||
Deferred rent | 41 | 38.2 | |
Accrued expenses | 37.6 | 34.2 | |
State tax net operating losses and credit carryforwards, net of federal benefit | 31 | 19.3 | |
Accrued compensation expense | 33.8 | 29.5 | |
Other | 5.1 | 0.6 | |
Total deferred tax assets | 148.5 | 121.8 | |
Valuation allowance | -13.8 | -6 | |
Deferred tax assets, net | 134.7 | 115.8 | |
Deferred tax liabilities: | |||
Property and equipment | -48.7 | -46.6 | |
Goodwill | -18.7 | -16.9 | |
Prepaid expenses | -3 | -3.7 | |
Inventory | -5.4 | -5.6 | |
Total deferred tax liabilities | -75.8 | -72.8 | |
Net deferred tax asset | 58.9 | 43 | |
Income Tax Uncertainties | |||
Valuation allowance | 13.8 | 6 | |
Number of prior years of taxable income used to assess the deductibility of carrybacks | 2 years | ||
Operating Loss Carryforwards, Valuation Allowance | 10.1 | ||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning Balance | 5.5 | 5.6 | |
Additions, based on tax positions related to current year | 0.6 | 0.2 | |
Additions for tax positions of prior years | 0.9 | 0.8 | |
Reductions for tax positions of prior years | 0 | -0.2 | |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | 0 | -0.3 | |
Lapses in statutes of limitation | -0.5 | -0.6 | |
Ending balance | 6.5 | 5.5 | 5.6 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 4.3 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | |||
Unrecognized Tax Benefits, accrued potential interest | 0.2 | ||
Liability for potential interest | $0.70 | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations and Audit Settlements | 12 months |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Future Minimum Lease Payments) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Commitments and Contingencies Disclosure [Abstract] | |||
2015 | $558.60 | ||
2016 | 521.8 | ||
2017 | 469.8 | ||
2018 | 335.7 | ||
2019 | 244.1 | ||
Thereafter | 492.5 | ||
Total minimum lease payments | 2,622.50 | ||
Minimum and Contingent Rentals | |||
Minimum rentals | 536.5 | 496.4 | 455.5 |
Contingent rentals | $1.80 | $1.80 | $2 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 30 Months Ended | 43 Months Ended | 49 Months Ended |
Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2015 | |
plantiff | sqft | plantiff | |
store | |||
locations | |||
Operating Lease Commitments [Abstract] | |||
Expected future minimum sublease rentals | 300,000 | 300,000 | 300,000 |
Letters of Credit [Abstract] | |||
Letters of Credit Outstanding, Number | 3 | 3 | 3 |
Letter of Credit Reimbursement and Security Agreement capacity | 110,000,000 | 110,000,000 | 110,000,000 |
Second Letter of Credit Reimbursement and Security Agreement amount | 100,000,000 | 100,000,000 | 100,000,000 |
Third Letter of Credit Reimbursement and Security Agreement Amount | 20,000,000 | 20,000,000 | 20,000,000 |
Committed to letters of credit | 162,900,000 | 162,900,000 | 162,900,000 |
Stand-by letters of credit | 11,900,000 | 11,900,000 | 11,900,000 |
Surety Bonds [Abstract] | |||
Surety bonds | 4,200,000 | 4,200,000 | 4,200,000 |
Technology Assets [Member] | |||
Communications and Information Technology [Abstract] | |||
Total commitment | 13,500,000 | 13,500,000 | 13,500,000 |
Telecom Contracts [Member] | |||
Communications and Information Technology [Abstract] | |||
Total commitment | 16,800,000 | 16,800,000 | 16,800,000 |
Line of Credit [Member] | |||
Letters of Credit [Abstract] | |||
Available letter of credit capacity | 150,000,000 | 150,000,000 | 150,000,000 |
Revolving line of credit capacity | 750,000,000 | 750,000,000 | 750,000,000 |
ResolvedLitigationCalifornia'sPrivateAttorneyGeneralAct [Member] [Member] | |||
Loss Contingency [Abstract] | |||
Number of plaintiffs | 2 | ||
Loss Contingency, Claims Settled and Dismissed, Number | 1 | ||
Winn Dixie Exclusive Selling Rights Violations Member | |||
Loss Contingency [Abstract] | |||
Number of Operating Locations Affected | 48 | ||
Action Taken by Court, Claims of Adverse Descision and Injunctive Relief, Number | 1 | ||
Stores Required To Restrict Sales Of Food | 21 | ||
Restricted Square Footage Area | 500 | ||
Previously Restricted Number of Stores | 21 | ||
Previously Restricted Square Footage Area | 500 | ||
Pending Or Threatened Litigation Multi State Litigation Member | |||
Loss Contingency [Abstract] | |||
Number of opt-in plaintiffs | 4,300 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | |||
Jan. 31, 2015 | Mar. 03, 2014 | Feb. 01, 2014 | Sep. 16, 2013 | |
Debt Instrument Additional Information | ||||
Long-Term Debt | $757,000,000 | $769,800,000 | ||
Current Portion of Long-Term Debt | 0 | 12,800,000 | ||
Long-term debt, excluding current portion | 757,000,000 | 757,000,000 | ||
2017 Maturities | 200,000 | |||
2018 Maturities | 1,400,000 | |||
2019 Maturities | 1,400,000 | |||
Maturities after 2019 | 754,000,000 | |||
Long-Term Debt, by Maturity | ||||
Demand Revenue Bond Debt Repayment | 12,800,000 | |||
Long-term Debt, Prepayment option at any time in amount not less than percent shown of the original aggregate amount | 5.00% | |||
Long-term debt, prepayment option at a price equal to the sum of (a) 100% of the principal amount thereof, plus any accrued and unpaid interest | 100.00% | |||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.00% | |||
Forgivable Promissory Note Repayment Period | 5 years | |||
Senior Notes [Member] | ||||
Debt Instrument Additional Information | ||||
Long-Term Debt | 750,000,000 | 750,000,000 | ||
Long-Term Debt, by Maturity | ||||
Aggregate principal amount | 750,000,000 | |||
Number of Long-term debt tranches | 3 | |||
Unsecured Debt [Member] | ||||
Debt Instrument Additional Information | ||||
Long-Term Debt | 0 | 0 | ||
Long-Term Debt, by Maturity | ||||
Revolving line of credit capacity | 750,000,000 | |||
Unsecured Credit Agreement maturity period | 5 years | |||
Interest rate terms | LIBOR, plus 0.90% | |||
Interest rate | 1.06% | |||
Borrowing capacity | 750,000,000 | |||
Demand Revenue Bonds [Member] | ||||
Debt Instrument Additional Information | ||||
Long-Term Debt | 0 | 12,800,000 | ||
Long-Term Debt, by Maturity | ||||
Aggregate principal amount | 19,000,000 | |||
Interest rate | 0.19% | |||
Forgivable Loan [Member] | ||||
Debt Instrument Additional Information | ||||
Long-Term Debt | 7,000,000 | 7,000,000 | ||
Long-Term Debt, by Maturity | ||||
Interest rate | 1.00% | |||
Line of Credit [Member] | ||||
Long-Term Debt, by Maturity | ||||
Revolving line of credit capacity | 750,000,000 | |||
Available letter of credit capacity | 150,000,000 | |||
September 16, 2020 [Member] | Senior Notes [Member] | ||||
Long-Term Debt, by Maturity | ||||
Borrowing capacity | 300,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.03% | |||
September 16, 2023 [Member] | Senior Notes [Member] | ||||
Long-Term Debt, by Maturity | ||||
Borrowing capacity | 350,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | |||
September 16, 2025 [Member] | Senior Notes [Member] | ||||
Long-Term Debt, by Maturity | ||||
Borrowing capacity | 100,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.78% |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
In Millions, unless otherwise specified | gal | gal | gal |
Derivative [Line Items] | |||
Derivative Financial Instruments Liabilitiies Fair Value Diesel Fuel Swap Disclosure | 5.7 | ||
Fuel Derivative Contracts [Member] | |||
Derivative [Line Items] | |||
Nonmonetary notional amount | 1,600,000 | 2,800,000 | 4,800,000 |
Diesel fuel need in derivative contracts (in hundredths) | 10.00% | 20.00% | 35.00% |
Commodity Contract 2 [Member] | |||
Derivative [Line Items] | |||
Nonmonetary notional amount | 6,600,000 | ||
Diesel fuel need in derivative contracts (in hundredths) | 40.00% |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 4 Months Ended | ||||
15-May-14 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Dec. 13, 2011 | Mar. 28, 2012 | Feb. 14, 2014 | Nov. 21, 2011 | |
Accelerated Share Repurchases [Line Items] | ||||||||
Total Shares Delivered Under Conclusion of Collared ASR Agreement | 9,000,000 | |||||||
Number of accelerated share repurchase programs entered into | 2 | |||||||
Amount of each accelerated share repurchase agreement | $500,000,000 | |||||||
Accelerated Share Repurchase Program Authorized Amount | 1,000,000,000 | |||||||
Shares delivered under the conclusion of the Uncollared Agreement | 1,900,000 | |||||||
Total shares delivered under Uncollared Repurchase Agreement | 9,100,000 | |||||||
Preferred Stock | ||||||||
Preferred Stock authorized to issue (in shares) | 10,000,000 | |||||||
Preferred Stock par value per share | $0.01 | |||||||
Share Repurchase Programs | ||||||||
Number of shares repurchased (in shares) | 2,400,000 | 7,700,000 | ||||||
Amount of shares repurchased | 112,100,000 | 340,200,000 | ||||||
Remaining amount of shares authorized to repurchase | 1,000,000,000 | |||||||
Accelerated Share Repurchases | ||||||||
Minimum Number Of Shares To Be Received Under Collar Agreement | 7,800,000 | |||||||
Shares Received at Conclusion Collared ASR Agreement | 1,200,000 | |||||||
Initial delivery of shares under the Uncollared Agreement | 7,200,000 | |||||||
Accelerated Share Repurchase Agreement November 2011 [Member] | ||||||||
Accelerated Share Repurchases | ||||||||
Accelerated Share Repurchases Amount to Repurchase | $300,000,000 | |||||||
Initial number of shares repurchased (in shares) | 6,800,000 | |||||||
Additional number of shares of common stock repurchased (in shares) | 500,000 | |||||||
Total shares of common stock repurchased (in shares) | 7,300,000 |
SHAREHOLDERS_EQUITY_Basic_and_
SHAREHOLDERS' EQUITY (Basic and Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Basic net income per share: | |||||||||||||
Net income | $206.60 | $133 | $121.50 | $138.30 | [1] | $213 | $125.40 | $124.70 | $133.50 | [1] | $599.20 | $596.70 | $619.30 |
Weighted average number of shares outstanding (in shares) | 206 | 218.1 | 229.3 | ||||||||||
Basic net income per share (usd per share) | $2.91 | $2.74 | $2.70 | ||||||||||
Diluted net income per share: | |||||||||||||
Net income | $206.60 | $133 | $121.50 | $138.30 | [1] | $213 | $125.40 | $124.70 | $133.50 | [1] | $599.20 | $596.70 | $619.30 |
Weighted average number of shares outstanding (in shares) | 206 | 218.1 | 229.3 | ||||||||||
Dilutive effect of stock options and restricted stock (as determined by applying the treasury stock method) (in shares) | 1 | 1 | 1.4 | ||||||||||
Weighted average number of shares and dilutive potential shares outstanding (in shares) | 207 | 219.1 | 230.7 | ||||||||||
Diluted net income per share (usd per share) | $1 | $0.64 | $0.59 | $0.67 | [1] | $1.02 | $0.58 | $0.56 | $0.59 | [1] | $2.90 | $2.72 | $2.68 |
[1] | Easter was observed on April 20, 2014 and March 31, 2013. |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Profit Sharing and 401(k) Retirement Plan [Abstract] | |||
Defined Contribution Profit Sharing and 401(k) Plan Description | The Company maintains a defined contribution profit sharing and 401(k) plan which is available to all employees over 21 years of age who have completed one year of service in which they have worked at least 1,000 hours.B B Eligible employees may make elective salary deferrals.B B The Company may make contributions at its discretion. | ||
Age over which all employees have 401K benefits available | 21 years | ||
Employee service years required for available 401K benefits (in years) | P1Y | ||
Minimum hours in a 401K qualifying one year period (in hours) | 1000 hours | ||
Plan Expenses | $41.10 | $35.80 | $40.70 |
Profit Sharing Vesting Schedule | |||
Percentage Vested in the Profit Sharing Plan After Two Years of Service (in Hundreths) | 20.00% | ||
Years of Service Required to vest 20% in the Profit Sharing Plan | 2 years | ||
Percentage Vested in the Profit Sharing Plan After Three Years of Service (in Hundreths) | 40.00% | ||
Years of Service Required to vest 40% in the Profit Sharing Plan | 3 years | ||
Percentage Vested in the Profit Sharing Plan After Four Years of Service (in Hundreths) | 60.00% | ||
Years of Service Required to vest 60% in the Profit Sharing Plan | 4 years | ||
Percentage Vested in the Profit Sharing Plan After Five Years of Service (in Hundreths) | 100.00% | ||
Years of Service Required to vest 100% in the Profit Sharing Plan | 5 years | ||
Deferred Compensation Plan [Abstract] | |||
Cumulative participant deferrals | $5.50 | $5.10 |
STOCKBASED_COMPENSATION_PLAN_N
STOCK-BASED COMPENSATION PLAN (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $3.70 | $5.60 | $21.80 |
Minimum statutory tax withholding related to vested restricted shares | 15.8 | 18.6 | 22.1 |
Compensation Expense | 37.4 | 36.2 | 34.9 |
Total fair value of vested restricted shares | 31.8 | 29.7 | 26.6 |
Service Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period of recognition (in months) | 21 months | ||
Service Based Awards [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted under service and performance awards (in shares) | 500,000 | 500,000 | 500,000 |
Compensation Expense | 22.2 | 21.1 | 21.9 |
Unrecognized compensation expense | 21.7 | ||
EIP and EOEP [Member] | Performance And Service Based Awards [Member] | Certain officers [Member] | Ratable Annual Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted under service and performance awards (in shares) | 200,000 | ||
Compensation expensed over the service period | 8.1 | ||
Allocated Share Based Compensation Expense Restricted Stock2011 Grants | 0.9 | 1.1 | 5.7 |
Eip [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | ||
Shares granted under fixed stock option compensation plans | 18,000,000 | ||
EOEP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | ||
Director Deferred Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | ||
Percentage of the share price of common stock used in the calculation to determine the number of options issued to a director (in hundredths) | 33.00% | ||
Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | ||
Shares available for grant | 4,000,000 | ||
Omnibus Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Certain officers [Member] | Vesting at End of Performance Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target Value | 1.7 | ||
Individual potential target award, minimum (in hundredths) | 0.00% | ||
Individual Potential Target Award Maximum | 200.00% | ||
Omnibus Incentive Plan [Member] | Performance And Service Based Awards [Member] | Ratable Annual Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted under service and performance awards (in shares) | 200,000 | ||
Compensation expensed over the service period | 10 | ||
Compensation Expense | 6.7 | ||
Omnibus Incentive Plan [Member] | Performance And Service Based Awards [Member] | Certain officers [Member] | Ratable Annual Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted under service and performance awards (in shares) | 200,000 | ||
Compensation expensed over the service period | 9.9 | ||
Allocated Share Based Compensation Expense Restricted Stock2012 Grants | 1.1 | 6.5 | |
Omnibus Incentive Plan [Member] | Performance And Service Based Awards [Member] | Chief Executive Officer [Member] | Ratable Annual Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Restricted stock granted under service and performance awards (in shares) | 200,000 | ||
Compensation Expense | 2 | 2 | 1.3 |
Target Value | 10 | ||
Share-based compensation arrangement by share-based payment award, service period | 5 years | ||
Omnibus Incentive Plan [Member] | Performance And Service Based Awards [Member] | Restricted Stock Units (RSUs) [Member] | Certain officers [Member] | Vesting at End of Performance Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target Value | 2 | ||
Individual potential target award, minimum (in hundredths) | 0.00% | 0.00% | |
Individual Potential Target Award Maximum | 200.00% | 200.00% | |
Omnibus Incentive Plan [Member] | Performance Shares [Member] | Restricted Stock Units (RSUs) [Member] | Certain officers [Member] | Vesting at End of Performance Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation Expense | 1 | ||
Target Value | 1.7 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of granted purchase rights (in dollars per share) | $8.17 | $8.26 | $6.97 |
Compensation Expense | 0.8 | 1 | 0.9 |
Employee stock purchase plan shares of common stock authorized for issuance | 5,278,125 | ||
Percentage of employee compensation eligible to purchase shares of common stock, maximum (in hundredths) | 10.00% | ||
ESPP Plan purchase price of stock (in hundredths) | 85.00% | ||
Shares sold under the ESPP | 4,786,751 | ||
2013 Restricted Stock Grant - Officers [Member] | Omnibus Incentive Plan [Member] | Performance Shares [Member] | Restricted Stock Units (RSUs) [Member] | Certain officers [Member] | Vesting at End of Performance Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation Expense | 1 | ||
2012 Restricted Stock Grant - Officers [Member] | Omnibus Incentive Plan [Member] | Performance Shares [Member] | Restricted Stock Units (RSUs) [Member] | Certain officers [Member] | Vesting at End of Performance Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation Expense | 0.4 | 1 | |
2011 Restricted Stock Grant - Officers [Member] | Omnibus Incentive Plan [Member] | Performance Shares [Member] | Restricted Stock Units (RSUs) [Member] | Certain officers [Member] | Vesting at End of Performance Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation Expense | $0.20 | $0.20 |
STOCKBASED_COMPENSATION_PLAN_R
STOCK-BASED COMPENSATION PLAN (RSU's) (Details) (USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, beginning of period (shares) | 1,723,634 |
Granted (shares) | 751,606 |
Vested (shares) | -798,015 |
Forfeited (shares) | -93,945 |
Nonvested, end of period (shares) | 1,583,280 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value, nonvested, beginning of period (dollars per share) | $41.64 |
Weighted average grant date fair value, granted (dollars per share) | $52.52 |
Weighted average grant date fair value, vested (dollars per share) | $39.91 |
Weighted average grant date fair value, forfeited (dollars per share) | $48.38 |
Weighted average grant date fair value, nonvested, end of period (dollars per share) | $48.48 |
STOCKBASED_COMPENSATION_PLAN_V
STOCK-BASED COMPENSATION PLAN (Various Option Plans and Options Outstanding) (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of options outstanding, beginning balance | 568,818 |
Options granted | 12,150 |
Exercised | -85,235 |
Forfeited | -4,500 |
Number of options outstanding, ending balance | 491,233 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted average exercise price per option, outstanding, beginning balance (dollars per share) | $13.40 |
Weighted average exercise price per option granted (dollars per share) | $57.37 |
Weighted average exercise price per option exercised (dollars per share) | $9.04 |
Weighted average exercise price per option forfeited (dollars per share) | $8.42 |
Weighted average exercise price per option, outstanding, ending balance (dollars per share) | $15.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted average remaining contractual term of options outstanding (in years) | 3 years 4 months 24 days |
Aggregate intrinsic value of options outstanding | $27.40 |
Options vested and expected to vest (shares) | 491,233 |
Options, vested and expected to vest weighted average exercise price (in dollars per share) | $15.29 |
Weighted average remaining contractual term, vested and expected to vest options (in years) | 3 years 4 months 24 days |
Aggregate intrinsic value, vested and expected to vest options | 27.4 |
Options exercisable at end of period (shares) | 491,233 |
Options exercisable at end of period, weighted average exercise price | $15.29 |
Options exercisable at end of period, weighted average remaining term | 3 years 4 months 24 days |
Options exercisable at end of period, aggregate intrinsic value | $27.40 |
$7.21 to $9.71 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $7.21 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $9.71 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Beginning of Period [Abstract] | |
Options outstanding | 216,105 |
Options outstanding, weighted average remaining contractual life (in years) | 2 years 1 month 6 days |
Options outstanding, weighted average exercise price (dollars per share) | $8.88 |
Options exercisable | 216,105 |
Options exercisable, weighted average exercise price (dollars per share) | $8.88 |
$9.72 to $14.52 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $9.72 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $14.52 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Beginning of Period [Abstract] | |
Options outstanding | 192,214 |
Options outstanding, weighted average remaining contractual life (in years) | 3 years 6 months 0 days |
Options outstanding, weighted average exercise price (dollars per share) | $13.07 |
Options exercisable | 192,214 |
Options exercisable, weighted average exercise price (dollars per share) | $13.07 |
$14.53 to $19.93 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $14.53 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $19.93 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Beginning of Period [Abstract] | |
Options outstanding | 15,516 |
Options outstanding, weighted average remaining contractual life (in years) | 4 years 10 months 24 days |
Options outstanding, weighted average exercise price (dollars per share) | $17.21 |
Options exercisable | 15,516 |
Options exercisable, weighted average exercise price (dollars per share) | $17.21 |
$19.94 to $28.36 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $19.94 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $28.36 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Beginning of Period [Abstract] | |
Options outstanding | 21,132 |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 9 months 18 days |
Options outstanding, weighted average exercise price (dollars per share) | $25.09 |
Options exercisable | 21,132 |
Options exercisable, weighted average exercise price (dollars per share) | $25.09 |
$28.37 to $70.38 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $28.37 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $58.45 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Beginning of Period [Abstract] | |
Options outstanding | 46,266 |
Options outstanding, weighted average remaining contractual life (in years) | 8 years 1 month 6 days |
Options outstanding, weighted average exercise price (dollars per share) | $49.29 |
Options exercisable | 46,266 |
Options exercisable, weighted average exercise price (dollars per share) | $49.29 |
$7.21 to $70.38 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $7.21 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $58.45 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Beginning of Period [Abstract] | |
Options outstanding | 491,233 |
Options outstanding, weighted average remaining contractual life (in years) | 3 years 4 months 24 days |
Options outstanding, weighted average exercise price (dollars per share) | $15.29 |
Options exercisable | 491,233 |
Options exercisable, weighted average exercise price (dollars per share) | $15.29 |
STOCKBASED_COMPENSATION_PLAN_F
STOCK-BASED COMPENSATION PLAN (Fair Value of Employee's Purchase Rights) (Details) | 12 Months Ended | ||
Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected Term | 3 months | 3 months | 3 months |
Expected volatility | 8.80% | 11.60% | 11.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 0.00% | 0.00% | 0.10% |
SALES_OF_INVESTMENT_Details
SALES OF INVESTMENT (Details) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Feb. 02, 2013 |
Investments, Debt and Equity Securities [Abstract] | |
Pre-tax Gain on Sale of Investments | $60.80 |
Gain, net of tax, on Sale of Investments | $38.10 |
Increase in Earnings per Diluted Share | $0.16 |
PENDING_ACQUISITION_AND_RELATE1
PENDING ACQUISITION AND RELATED DEBT (Details) (Subsequent Event [Member], USD $) | 0 Months Ended | ||
Feb. 24, 2015 | Mar. 09, 2015 | Feb. 23, 2015 | |
Senior Notes [Line Items] | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
Senior Secured Credit Facilities [Member] | |||
Senior Notes [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | ||
Base Rate plus Interest per Annum | 1.25% | ||
Senior Secured Credit Facilities | $6,200,000,000 | ||
Revolving Credit Facility [Member] | |||
Senior Notes [Line Items] | |||
Senior Secured Credit Facilities | 1,250,000,000 | ||
Term Loan Facilities [Member] | |||
Senior Notes [Line Items] | |||
Senior Secured Credit Facilities | 4,950,000,000 | ||
Term Loan A [Member] | |||
Senior Notes [Line Items] | |||
Senior Secured Credit Facilities | 1,000,000,000 | ||
Quarterly Amortization Payments Percentage of Original Principal Amount in Year One | 1.25% | ||
Quarterly Amortization Payments Percentage of Original Principal Amount In Year Two | 2.50% | ||
Quarterly Amortization Payments Percentage of Original Principal Amount after Year Three | 3.75% | ||
Term Loan B [Member] | |||
Senior Notes [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||
Base Rate plus Interest per Annum | 2.50% | ||
Senior Secured Credit Facilities | 3,950,000,000 | ||
LIBOR Floor Percentage Rate | 0.75% | ||
Quarterly Amortization Percentage Payments of the Original Principal Amount after the closing | 0.25% | ||
Prepayment fee | 1.00% | ||
2020 Senior Notes [Member] | |||
Senior Notes [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||
Senior Notes | 750,000,000 | ||
2023 Senior Notes [Member] | |||
Senior Notes [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||
Senior Notes | $2,500,000,000 |
PENDING_ACQUISITION_AND_RELATE2
PENDING ACQUISITION AND RELATED DEBT Pending Acquisition (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Jul. 27, 2014 |
Business Acquisition [Line Items] | ||
Business Combination, Estimated Acquisition Related Costs | $210 | |
Business Combination, Acquisition Related Costs | 75.2 | |
Business Combination, Acquisition Related Costs Paid | 33.5 | |
Business Combination Acquisition Related Costs, recorded in Selling, General & Administrative Expense | 28.5 | |
Business Combination, Acquisition Related Interest Expense Costs | 46.7 | |
Business Combination, Estimated Acquisition Related Commitment Fees | 22.6 | |
Business Combination, Estimated Acquisition Capitalizable Debt Issuance Costs | 174 | |
Business Combination, Contingent Consideration, Asset | 70.2 | |
Business Combination, Contingent Consideration, Liability | $112 | |
Family Dollar [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Share Price | $59.60 | |
Maximum [Member] | Family Dollar [Member] | Common Stock [Member] | ||
Business Acquisition [Line Items] | ||
Conversion of Stock, Shares Converted | 0.3036 | |
Minimum [Member] | Family Dollar [Member] | Common Stock [Member] | ||
Business Acquisition [Line Items] | ||
Conversion of Stock, Shares Converted | 0.2484 |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
store | store | store | store | store | store | store | store | store | store | ||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Net sales | $2,475.60 | $2,095.20 | $2,031.10 | $2,000.30 | [1] | $2,234.90 | $1,884.70 | $1,854.90 | $1,865.80 | [1] | $8,602.20 | $7,840.30 | $7,394.50 |
Gross profit | 918.1 | 725.3 | 694.1 | 696.6 | [1] | 825.2 | 659.9 | 648.7 | 656 | [1] | 3,034 | 2,789.80 | 2,652.70 |
Operating income | 383.6 | 219.7 | 205 | 231.9 | [1] | 348.2 | 204.3 | 201.3 | 216.6 | [1] | 1,040.20 | 970.3 | 920.1 |
Net income | $206.60 | $133 | $121.50 | $138.30 | [1] | $213 | $125.40 | $124.70 | $133.50 | [1] | $599.20 | $596.70 | $619.30 |
Diluted net income per share (usd per share) | $1 | $0.64 | $0.59 | $0.67 | [1] | $1.02 | $0.58 | $0.56 | $0.59 | [1] | $2.90 | $2.72 | $2.68 |
Stores open at end of quarter | 5,367 | 5,282 | 5,166 | 5,080 | [1] | 4,992 | 4,953 | 4,842 | 4,763 | [1] | 5,367 | 4,992 | |
Comparable store net sales change (in hundredths) | 5.50% | 5.90% | 4.40% | 1.90% | [1] | 1.20% | 3.10% | 3.70% | 2.10% | [1] | |||
[1] | Easter was observed on April 20, 2014 and March 31, 2013. |